Final answer:
To determine the comparative advantage, calculate the opportunity cost for each good in both Canada and Sweden. Canada has a comparative advantage in Maple Syrup, and Sweden has a comparative advantage in Toilet Paper, based on their respective lower opportunity costs.
Step-by-step explanation:
To calculate comparative advantage, we must find the opportunity cost of producing one good in terms of the other for both Canada and Sweden. Canada can produce either 100 cases of Toilet Paper or 200 cases of Maple Syrup, meaning that the opportunity cost of one case of Toilet Paper is 2 cases of Maple Syrup (200/100). Conversely, the opportunity cost of one case of Maple Syrup is 0.5 cases of Toilet Paper (100/200).
For Sweden, the production possibilities are 50 cases of Toilet Paper or 25 cases of Maple Syrup. Thus, the opportunity cost for one case of Toilet Paper is 0.5 cases of Maple Syrup (25/50), and the opportunity cost for one case of Maple Syrup is 2 cases of Toilet Paper (50/25).
Comparing the two countries, Canada has the comparative advantage in producing Maple Syrup because it has a lower opportunity cost (0.5 instead of 2 cases of Toilet Paper), while Sweden has the comparative advantage in producing Toilet Paper for the same reason (0.5 instead of 2 cases of Maple Syrup).