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.Using the concepts of absolute and comparative advantage,we can say that the United States has the comparative advantage in:
A) the production of both gloves and radishes.
B) neither the production of gloves nor radishes.
C) the production of gloves only.
D) the production of radishes only.

Question

Quizplus · Accepted Answer

The United States has a lower opportunity cost for producing radishes compared to Bangladesh, giving it a comparative advantage in radish production.

Suppose an American Worker Can Make 50 Pairs of Gloves