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1.Following table shows production capacity of two goods i.e. paper and pin of China and Bangladesh. China Bangladesh 1 unit of Pin 1 hr 4
1.Following table shows production capacity of two goods i.e. paper and pin of China and Bangladesh.
China
Bangladesh
1 unit of Pin
1 hr
4 hrs
1 unit of Paper
3 hrs
8 hrs
a.Which nation has an absolute advantage in the production of each good?
b.Which nation has a comparative advantage in the production of each good?
c.If the nation trade with each other, which good will each export?
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