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Chapter 15 revision - Coggle Diagram

- - - - A country or firm can sell at lower prices and realize greater margins
  - - - Country a = 500/5000 = 0.1
        
        Opportunity cost = 0.1
        
        Country b has comparative adavntage of producing TV's
        
        Country b should focus more on producing TV's and open up trade with country a for good a
      - Country b = 900/10000=0.09
        
        Opportunity cost = 0.09
      - Who has comparative adavntage of Good a?
        
        Country a = 5000/500 = 10
        
        Country b = 10000/900= 11.11
        
        Country a has comparative advantage of good a
        
        This means that country a should focus more on producing good a and open up trade with country b for televisions