If England uses one week's time to produce ten yards of cloth or two barrels of wine and Portugal uses one week's time to produce twelve yards of cloth or six barrels of wine, then England has a comparative advantage in the production of cloth.

Question

Quizplus · Accepted Answer

England can produce 1 yard of cloth in 0.1 weeks (1 week / 10 yards), while Portugal can produce 1 yard of cloth in 0.5 weeks (1 week / 12 yards). Therefore, England can produce cloth more efficiently than Portugal and has a comparative advantage in the production of cloth.

If England Uses One Week's Time to Produce Ten Yards