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25 May, 05:43

In Country A, the production of 1 bicycle requires using resources that could otherwise be used to produce 11 lamps. In Country B, the production of 1 bicycle requires using resources that could otherwise be used to produce 15 lamps. Which country has a comparative advantage in making bicycles?

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  1. 25 May, 06:09
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    Country A

    Explanation:

    given data

    country A give 11 lamp produce = 1 bicycle

    country B give 15 lamps produce = 1 bicycle

    solution

    we know that country comparative advance is require giving up less of product for producing 1 bicycle

    so as that country A has comparative advantage over country B

    it is Because Country B has to sacrifice more in order to have 1 unit of the bicycle

    so comparative advantage in making bicycles is Country A
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