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# Answer to Question #47112 in Microeconomics for Yoyo

Question #47112
Suppose O can produce corn for $1 per bushel and wheat for$6 per bushel while S can produce corn for $2 per bushel and wheat for$4 per bushel. O has an absolute and comparative advantage in corn while S has an absolute and comparative advantage in wheat.
1
2014-10-03T15:00:34-0400
The absolute opportunity costs of producing 1 corn is $1 for O and$2 for S. O can produce corn cheaper, then S, that&rsquo;s why O has an absolute advantage in corn.
The absolute opportunity costs of producing 1 wheat is $6 per bushel for O and$4 per bushel for S. S can produce wheat cheaper, then O, that&rsquo;s why S has an absolute advantage in corn.
The alternative opportunity costs of producing 1 corn is $1/$6 = $0.17 for O and$2/$4=$0.5 for S. O can produce corn cheaper, then S, that&rsquo;s why O has an comparative advantage in corn.
The alternative opportunity costs of producing 1 wheat is $6/1 =$6 for O and $4/$2=\$2 for S. S can produce wheat cheaper, then O, that&rsquo;s why S has an absolute advantage in corn.
We can see that O has an absolute and comparative advantage in corn while S has an absolute and comparative advantage in wheat. That&rsquo;s why this statement is true.

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