Scenario 8

Suppose that in Country A, one worker per day can produce either 68 units of food or 36 units of capital goods; while in in Country B, one worker per day can produce either 78 units of food or 46 units of capital goods.

Refer to Scenario 8.Which country has a comparative advantage in the production of capital goods?

Country A

Country B

Both Country A and Country B

Neither Country A nor Country B