Sir i am having one doubt that , india is producing one unit of wheat by 80 labour and cloth by 90 labour ,In the diagram how it will comes that the labour required for one unit ot wheat by 90 labour? I cant understand this one
In that diagram, America can't move on comparative cost advantage so can't changes in producing two goods labour requirements. But India move on comparative cost advantage, India got the comparative cost advantage commodity is wheat so they less producing the clothes and use that labour to wheat. That's why in diagram India wheat labour requirements is increase 80 to 90, at the same time we convert the "clothes labour to wheat labour" that's why clothes labour requirements are decreases 90 to 80. Because India got comparative cost advantage is wheat.
🙏Sorry to all for wrongly provide the answer 1.11>1.5 🙏. “The correct answer is 1.11
Sir america is profit to produce cloth because1.11
Yes your correct, Thank you for informing 👍..
Sir i am having one doubt that , india is producing one unit of wheat by 80 labour and cloth by 90 labour ,In the diagram how it will comes that the labour required for one unit ot wheat by 90 labour? I cant understand this one
In that diagram, America can't move on comparative cost advantage so can't changes in producing two goods labour requirements. But India move on comparative cost advantage, India got the comparative cost advantage commodity is wheat so they less producing the clothes and use that labour to wheat. That's why in diagram India wheat labour requirements is increase 80 to 90, at the same time we convert the "clothes labour to wheat labour" that's why clothes labour requirements are decreases 90 to 80. Because India got comparative cost advantage is wheat.
Thank you sir
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I can't understand sir please tell me clear sir please 🙏🙏
You trade something you're good at making for something someone else is good at making. Countries do the same thing!
I am waiting for your reply msg sir
I am waiting for your reply msg sir