Authors libby rittenberg 893
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"Comparative Advantage in Roadway and Seaside", one additional boat
costs two trucks in Roadway; that is its opportunity cost. At point A′ in
Panel (b), 1 additional boat in Seaside costs only 0.2 truck. Alternatively,
we can ask about the opportunity cost of an additional truck. In Roadway,
an additional truck costs 0.5 boats. In Seaside, it costs five boats. Roadway
thus has a comparative advantage in producing trucks; Seaside has a
comparative advantage in producing boats. This situation is suggested
pictorially in Figure 17.4 "A Picture of Comparative Advantage in Roadway
and Seaside".
Figure 17.4 A Picture of Comparative Advantage in Roadway and
Seaside
Attributed to Libby Rittenberg and Timothy Tregarthen
Saylor URL: />
Saylor.org
893
