The
Principle of Comparative Advantage: A Real-Life Example
The
Principle of Comparative Advantage: A Real-Life Example
The Blue country and the Green country both produce hand guns and hard liquor (perfect complements). Consider their production possibilities (see the PPC diagram to the right [click on the thumbnail for a larger diagram]) and answer the following questions.
1. Complete the following table: [Answer]
| Opportunity Costs | ||
| Hand Guns | Hard Liquor | |
| Blue | ||
| Green | ||