According to the following table,the UK has a comparative advantage in: $\begin{array}{|l|c|c|}
\hline &\text { U.S. }&\text { U.K.} \
\hline \text {Wheat (bushels/hr) }& 9 & 3 \
\hline\text { Cloth (yards/hr) }& 6 & 4 \
\hline
\end{array}$
A)Wheat
B)Cloth
C)Both
D)Neither

Question

Quizplus · Accepted Answer

The UK has a comparative advantage in cloth because it has a lower opportunity cost in producing cloth compared to wheat. For the UK, the opportunity cost of producing 1 yard of cloth is 0.75 bushels of wheat (3 bushels of wheat / 4 yards of cloth), whereas for the US, the opportunity cost of producing 1 yard of cloth is 1.5 bushels of wheat (9 bushels of wheat / 6 yards of cloth). Since the UK's opportunity cost for cloth is lower, it has a comparative advantage in producing cloth.

According to the Following Table,the UK Has a Comparative Advantage