innovations of certain industries for better results in which a nation compares them with the best t
• Both countries have the same opportunity costs, but the decision comes down to specialization based on the good they can produce more efficiently relative to the other.
• Country A has a comparative advantage in producing wheat because it has to give up less Lowered opportunity cost wine to produce wheat compared to Country B.
• Country B is comparative advantageous in wine production because it has to give up fewer tons of wheat to produce wine compared to Country A.