Question 8 • 2102320-Economics HONORS - Edgenuity Teacher
Compare each company’s opportunity cost of producing small tubes: how many large tubes it gives up per small tube. Company 1 gives up 100 ÷ 200 = 0.5 large tubes; company 2 gives up 100 ÷ 250 = 0.4; company 3 gives up 200 ÷ 250 = 0.8; and company 4 gives up 150 ÷ 150 = 1. The lowest opportunity cost means the greatest comparative advantage, so the order is 2, 1, 3, 4: choice A.
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