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In Country A, the production of 1 bicycle requires using resources that could otherwise be used to produce 11 lamps. In Country B, the production of 1 bicycle requires using resources that could otherwise be used to produce 15 lamps. Which country has a comparative advantage in making bicycles?

User Kws
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1 Answer

5 votes

Answer:

Country A

Step-by-step explanation:

given data

country A give 11 lamp produce = 1 bicycle

country B give 15 lamps produce = 1 bicycle

solution

we know that country comparative advance is require giving up less of product for producing 1 bicycle

so as that country A has comparative advantage over country B

it is Because Country B has to sacrifice more in order to have 1 unit of the bicycle

so comparative advantage in making bicycles is Country A

User Sreenath S
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