Suppose that the United States and Canada each produce only two products, televisions and food. The United States can produce 100 televisions a day, 150 pounds of food a day, or any combination in between. (For example, it could produce 100 televisions and no food, 50 televisions and 75 pounds of food, or 150 pounds of food and no televisions.) Canada can produce 300 televisions a day, 330 pounds of food a day, or any combination in between. Who has a comparative advantage in producing food and televisions?
- The United States has a comparative advantage in producing televisions.
- Canada has a comparative advantage in producing televisions.
- The United States has a comparative advantage in producing food.
- Canada has a comparative advantage in producing food.