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. Which of the following statements is true?

Question

Quizplus · Accepted Answer

Bangladesh has a lower opportunity cost of producing rice since they can produce 330 pounds of rice or 110 shirts in one year while in Singapore an individual produces 400 pounds of rice or 200 shirts in one year. This means that Bangladesh has a comparative advantage in the production of rice, as it can produce rice at a lower opportunity cost than Singapore.

In Bangladesh One Person Can Produce 330 Pounds of Rice