A country has the correct climate for growing tea, which is produced very cheaply and exported.
Fruit is also grown, but this costs more as the climate is not as suitable.
Fruit can be sold at a higher price than tea so some of the land used for tea is switched to fruit.
What will definitely happen as a result?
1 )
There will be an increase in specialisation by the country.
2 )
There will be an increase in the imports of tea.
There will be an opportunity cost of the loss of the tea production.
4 )
There will be production in line with absolute advantage.
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