Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day. On the other hand, a Bangladeshi worker can produce 100 pairs of gloves or grow 200 radishes per day. The opportunity cost of one pair of gloves is:
A) lower for the United States than Bangladesh, therefore the United States has a comparative advantage at producing gloves.
B) higher for the United States than Bangladesh, therefore the United States has a comparative advantage at producing radishes.
C) the same for both the United States and Bangladesh, therefore neither country has a comparative advantage at producing gloves.
D) the same for both the United States and Bangladesh, therefore both countries have a comparative advantage at producing gloves.
Correct Answer:
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