ABSOLUTE / COMPARITIVE ADVANTAGE

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ABSOLUTE / COMPARITIVE ADVANTAGE

Mauli
 There are two countries- India and England; two goods- tea and textile; and one input- labour. While textile can be produced by both India and England, tea can only be grown in India. If the labour coefficient in the production of textile is lower for England than for India, what can be said about their comparative advantage?

a) India has comparative advantage in tea
b) India has an absolute advantage in textile
c) England has comparative advantage in textile
d) The comparative advantage cannot be inferred
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Re: ABSOLUTE / COMPARITIVE ADVANTAGE

Ayushya Kaul
Hahahah, we both are being strongly ignored.