The following table shows per-day production data of rice and T-shirts for two countries, Cambria and Bodoni. Based on the table, it can be said that Bodoni should produce rice and trade their rice for Cambria's T-shirts.

Question

Quizplus · Accepted Answer

Bodoni is producing more rice than T-shirts compared to Cambria. Therefore, Bodoni has a comparative advantage in producing rice, while Cambria has a comparative advantage in producing T-shirts. Both countries can benefit from trading with each other according to their comparative advantages.

The Following Table Shows Per-Day Production Data of Rice and T-Shirts