The production possibilities for country x are either 6,000 bushels of soybeans or 10,000 bushels of wheat. the production possibilities for country y are either 2,000 bushels of soybeans or 4,000 bushels of wheat. which of the following is true? a. country y should specialize in the growing of soybeans according to the principle of comparative advantage.
b. country x is the least-cost producer of wheat.
c. the domestic opportunity cost of wheat production is lower in country y.
d. the high cost producer of soybeans is country x.

The correct answer is option A.

Explanation:

The country X can produce either 6,000 bushels of soybeans or 10,000 bushels of wheat.  

The country Y can produce either 2,000 bushels of soybeans or 4,000 bushels of wheat.  

The opportunity cost of producing soybeans for country X

=

=

= 0.6

The opportunity cost of producing soybeans for country Y

=

=

= 0.5

Since, the opportunity cost for country Y is lower we can say that it has a comparative advantage in producing soybeans and specializes in its production.

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