Suppose that in Belize, the opportunity cost of producing a sailboat is 5 hang gliders. In Honduras, the opportunity cost of producing a sailboat is 8 hang gliders
a. What is the opportunity cost of producing a hang glider for Belize?
b. What is the opportunity cost of producing a hang glider for Honduras?
c. Which country has a comparative advantage in the production of hang gliders?
d. Which country has a comparative advantage in the production of sailboats?
a. For Belize, the opportunity cost of producing a hang glider is 1/5 of a sailboat.
b. For Honduras, the opportunity cost of producing a hang glider is 1/8 of a sailboat.
c. Honduras has a comparative advantage in the production of hang gliders.
d. Belize has a comparative advantage in the production of sailboats.
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