-Using the table above, which of the following statements about the table above is correct?
A)The East has a comparative advantage in the production of both goods.
B)The East has a comparative advantage in the production of Food and the West has a comparative advantage in the production of Clothing.
C)The East has a comparative advantage in the production of Clothing and the West has a comparative advantage in the production of food.
D)The West has a comparative advantage in the production of both goods.

Question

-Using the table above, which of the following statements about the table above is correct?
A)The East has a comparative advantage in the production of both goods. 
B)The East has a comparative advantage in the production of Food and the West has a comparative advantage in the production of Clothing. 
C)The East has a comparative advantage in the production of Clothing and the West has a comparative advantage in the production of food. 
D)The West has a comparative advantage in the production of both goods.

Quizplus · Accepted Answer

Comparative advantage is determined by which region has the lower opportunity cost for producing a good. The East has a comparative advantage in Clothing if it sacrifices less Food to produce Clothing compared to the West, and vice versa for Food.

-Using the Table Above, Which of the Following Statements About