BUSINESS HIGH SCHOOL

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?

Answers

Answer 1
Answer:

Answer:

Country A

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

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Answer:

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Answers

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Answer:

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