
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Transcribed Image Text:Timber 25
(millions
of tons)
Key
Torland
Leeland
20
15
10
5
10
15
20
25
Honey (millions of tons)
Figure 2 Production possibility frontiers for two countries
Figure 2 shows the production possibility frontiers for two countries, Torland and
Leeland. Select one correct statement from the following options:
Select one:
O Neither country has a comparative advantage in the production of timber or
honey.
O Leeland has a comparative advantage in the production of timber and Torland
has a comparative advantage
honey.
O Torland has a comparative advantage in the production of timber and Leeland
has a comparative advantage in honey.
O Both countries have a comparative advantage in the production of timber and
honey.
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