Answered

Which country has a comparative advantage for producing cups? Units of Cups Produced per Hour per Worker Units of Plates Produced per Hour per Worker

India 15 10

France 8 9

Japan 7 7

Canada 6 9

  1. Canada

2.France

3.India

  1. Japan

Verified Answer :

the correct Answer is India - plato users

felipe92nava

Answer:

3. India

Explanation:

Remember that comparative advantage, an economic term, refers to when a country is able to produce a good or service for a opportunity cost than other countries. This means this country or individual sacrifices less to produce it's product. In this way they can sell goods and services at a lower price than competitors, having stronger sales margins.

In this case the opportunity cost of producing cups means how many plates could have been done when doing one cup.

India: 1 cup - 0.666 plates

France: 1 cup - 1.25 plates

India: 1 cup - 1 plate

Japan: 1 cup - 1.5 plates

We can see that the lowest opportunity cost is the one of India, this means it sacrifices less in the production of cups making it have comparative advantage over the other countries.

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