Canada and the US both produce wheat and computer software. Canada is said to have the comparative advantage in producing wheat if

Answer 1

it can produce wheat at a lower opportunity cost than the US. This means that Canada gives up fewer units of computer software to produce one unit of wheat compared to the US. In other words, Canada has a lower opportunity cost of producing wheat than the US.

On the other hand, the US is said to have the comparative advantage in producing computer software if it can produce software at a lower opportunity cost than Canada. This means that the US gives up fewer units of wheat to produce one unit of software compared to Canada. In other words, the US has a lower opportunity cost of producing software than Canada.

Therefore, if Canada can produce wheat at a lower opportunity cost than the US, it has the comparative advantage in producing wheat. If the US can produce computer software at a lower opportunity cost than Canada, it has the comparative advantage in producing software.