England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 30 scones per hour or 2 sweater per hour. Suppose that a Scottish worker can produce 40 scones per hour or 4 sweaters per hour. Who will produce sweaters?

Step-by-step explanation:

Scones Sweaters

England 30 2

Scotland 40 4

The opportunity cost calculation:

Opportunity Cost

England Scotland

1 Scone 0.066 Sweaters 0.1 Sweaters

1 Sweater 15 Scones 10 Scones

England has comparative advantage in production of Scones; Scotland has comparative advantage in production of Sweaters.

Scotland will produce Sweaters