In Bangladesh,one person can produce 330 pounds of rice or 110 shirts in one year.In Singapore,one person can produce 400 pounds of rice or 200 shirts in one year.What is the result?

Question

Quizplus · Accepted Answer

Bangladesh has a lower opportunity cost of producing rice compared to shirts (1 pound of rice is worth less than 1 shirt), while Singapore has a lower opportunity cost of producing shirts compared to rice (1 shirt is worth less than 1 pound of rice). This means that Bangladesh has a comparative advantage in rice production, while Singapore has a comparative advantage in shirt production. Absolute advantage is not relevant in determining comparative advantage.

In Bangladesh,one Person Can Produce 330 Pounds of Rice or 110