Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 3 - Exchange and Markets - Exercises - 3.1 Comparative Advantage and Exchange - Page 63: 1.10

Answer

comparative timber

Work Step by Step

The grain production that Latvia has to forego in order to produce timber is less than the amount of grain production the EU would give up to produce timber, so Latvia has a comparative advantage in timber.
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