contestada

Missouri can produce 10,000 tons of pecans per year or 5,000 tons of pears per year. Washington can produce 12,000 tons of pecans per year or 48,000 tons of pears per year. Which of the following statements about opportunity cost is correct ? A. Washington has an absolute advantage in the production of both pecans and pears B. missouri would specialize in pecan production and trade pecans to Washington for pears

Respuesta :

Answer:B. Missouri would specialize in pecan production and trade pecans to Washington for pears.

Explanation:This is because,world trade hinges on the theory of "comparative cost advantage" which states that " countries should specialize in the production of commodities which they have cost advantage over others".