In the production possibilities of Aconia and Zeconia, which statement is true?

In the context of production possibilities, understanding the concept of comparative advantage is crucial. Aconia should specialize in producing corn if it has a lower opportunity cost for corn production compared to Zeconia. This means that Aconia can produce corn more efficiently relative to textiles than Zeconia can, allowing both countries to benefit from trade.

When specialization occurs based on comparative advantage, each country focuses on what it can produce best, leading to an overall increase in total production and efficiency. Therefore, the statement suggesting that Aconia should specialize in corn is appropriate because it implies that Aconia can contribute more effectively to overall production by maximizing its strengths in corn-growing, while Zeconia might focus on textiles or other goods where it has a comparative advantage.

The other options do not align with the principles of comparative advantage and specialization. For instance, stating that Zeconia should produce only textiles ignores the potential benefits of trade and specialization based on opportunity costs. Similarly, the idea that both countries should produce equally across products does not take into account the efficiency gains from specialization. Finally, the assertion that Aconia has no comparative advantage in corn contradicts the idea of them specializing in it, which signals that they indeed have a comparative advantage in that