Question 15 • * HSA 26-27 Economics
Comparative advantage in car parts goes to the company with the lowest opportunity cost of producing them. Compare truck parts given up per car part: Company A gives up 10/20 = 0.5, Company B gives up 10/25 = 0.4, Company C gives up 15/15 = 1, and Company D gives up 20/25 = 0.8. Company B gives up the fewest truck parts per car part, so it has the comparative advantage.
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