Country A is an extremely efficient producer of tin. However, its climate and terrain makes it difficult to produce corn. According to the theory of comparative advantage, Country A should:__________.

Question

21-01-2020
Business

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Country A is an extremely efficient producer of tin. However, its climate and terrain makes it difficult to produce corn. According to the theory of comparative advantage, Country A should:__________.

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Dryomys Dryomys · Answer 1 · 2020-01-22T07:14:26+01:00

Answer:

Theory of comparative advantage states that a country has a comparative in a production of certain commodities if the opportunity cost of producing these commodities is lower than the other countries.

Here, it is given that country A is a efficient producer of tin and there are some difficulties in producing corn. So, country A have to concentrate on the production of Tin and purchase the corn from any other efficient producer.