In Country A, the production of 1 bicycle requires using resources that could otherwise be used to produce 11 lamps. In Country $\mathrm{B}$, 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? LO40.2 a. Country A. b. Country B.
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Comparative advantage is an economic term that refers to an economy's ability to produce goods and services at a lower opportunity cost than that of trade partners. In this case, the opportunity cost of producing 1 bicycle in Country A is 11 lamps, while in Show more…
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