Given the information in the table above
A) neither country has a comparative advantage in cloth.
B) Home has a comparative advantage in cloth.
C) Foreign has a comparative advantage in cloth.
D) Home has a comparative advantage in both cloth and widgets.
E) neither country has a comparative advantage in widgets.

Question

Quizplus · Accepted Answer

Home has a lower opportunity cost of producing cloth (1/2 widget) compared to Foreign's opportunity cost of producing cloth (1 widget). Therefore, Home has a comparative advantage in cloth production.

Given the Information in the Table Above