Suppose three countries produce rulers and pencils with output per worker per day in each country as follows: Which country has the greatest comparative advantage in the production of rulers? A. China. B. Brazil. C. Mexico.
Mexico has the lowest opportunity cost to produce an extra ruler. The opportunity cost is 2 pencils per ruler in Mexico, 3 pencils per ruler in Brazil, and 4 pencils per ruler in China.
Which country has the greatest comparative advantage in the production of rulers?
