Suppose that greece and switzerland both produce rye and stained glass. greece's opportunity cost of producing a pane of stained glass is 4 bushels of rye while switzerland's opportunity cost of producing a pane of stained glass is 10 bushels of rye. by comparing the opportunity cost of producing stained glass in the two countries, you can tell that (germany, france) has a comparative advantage in the production of stained glass and (germany, france) has a comparative advantage in the production of rye.

Greece; Switzerland

Explanation:

Greece:

Opportunity cost of producing a pane of stained glass = 4 bushels of rye

Opportunity cost of producing a bushel of rye = (1 ÷ 4)

                                                                             = 0.25 pane of stained glass

Switzerland:

Opportunity cost of producing a pane of stained glass = 10 bushels of rye

Opportunity cost of producing a bushel of rye = (1 ÷ 10)

                                                                             = 0.1 pane of stained glass  

Therefore,

Greece has a comparative advantage in producing pain of stained glass because the opportunity cost of producing stained glass is lower than the Switzerland.

Switzerland has a comparative advantage in producing bushel of rye because the opportunity cost of producing a bushel of rye is lower than the Greece.

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