CA Foundation doubt
Pls can anyone help me in this q How is comparative cost calculated should i use opportunity cost formula (sacrificing/gaining) and if yes then how should i compare like b/w table's opportunity cost of two countries or, other way (bw india's tables and mats whichever lower cost) the more i have searched for it more confusing it got
Asked by Chetna20 Mar 2025556 views
Chetna · 21 Mar 2025
Is it like since bangladesh has highest absolute advantage in mats thats why it also has comparative adv. in mats (Cause thats what comparative adv. theory say produce good that gives u highest absolute adv)
Keshu · 21 Mar 2025
India Bangladesh Table 3 8 Mats 2 1 Now, it's not something related to cost, It's related to labour(unit of work and not persons){let's say time in hours} Unit of labour is given to us of both countries. This means that in India, labourers require 3 hours of work to produce a table whether in Bangladesh, it requires 8 So india have advantage in tables compared to Bangladesh(as it can produce fast) Similarly Bangladesh have advantage in mats compared to India
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