Answer:
Opportunity cost, comparative advantage and absolute advantage.
Explanation:
Production possibility curve is a graphical representation of two goods to be produced by the firm or by a country. It represents various combination of two goods that would be produced by the firms.
From these curves, we can determine the opportunity cost of producing one good in terms of other good. By calculating the opportunity cost of each good in terms of other good for both the countries, we can easily determine which country has the comparative advantage.
