Suppose an American Worker Can Make 50 Pairs of Gloves

question 81

Multiple Choice

Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day.A Bangladeshi worker,on the other hand,can produce 100 pairs of gloves or grow 200 radishes per day.Which of the following statements is true?

• A)Bangladesh should specialize in glove production since it possesses the comparative advantage in glove production.
• B)Bangladesh should specialize in radish production since it possesses the comparative advantage in radish production.
• C)Bangladesh should only produce gloves since it has the absolute advantage in glove production.
• D)Bangladesh should only produce radishes since it has the absolute advantage in radish production.

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