Author Question: When India chooses to produce hoodies over coats and it must give up the coats it could produce if ... (Read 155 times)

Mimi · **on:** Sep 11, 2018

When India chooses to produce hoodies over coats and it must give up the coats it could produce if it did not produce hoodies. The U.S. can produce both as well but it gives up more coats than India when it produces hoodies. In the situation the U. S. has the comparative advantage in the production of hoodies over India. a.True b.False

What will be an ideal response?

Question 2

Resources in fashion such as fibers, fabrics, designers, and sales representatives flow to businesses and businesses pay for these resources.

a. True
b. False

juwms · **Reply #1 on:** Sep 11, 2018

Answer to Question 1

b
If India gives up fewer coats when it produces hoodies than when the U.S. produces hoodies, then
India has the comparative advantage. The country with the lowest opportunity cost has the
comparative advantage.

Answer to Question 2

a