Suppose a producer requires a smaller quantity of inputs to

Suppose a producer requires a smaller quantity of inputs to produce carrots than to produce onions. This information is enough to allow us to determine in which good this producer has a comparative advantage
True
False
Suppose a producer requires a smaller quantity of inputs to produce carrots than to produce onions. This information is enough to allow us to determine in which good this producer has a comparative advantage
True
False

Solution

False.

Explanation:

Not only the amount of input required for production of two goods is required but also the amount of output produced with that amount of input is required to know comparative advantage. It may be possible that the with putting higher amount of input, the onion production per unit of input might be quite high as compared to Carrots.

 Suppose a producer requires a smaller quantity of inputs to produce carrots than to produce onions. This information is enough to allow us to determine in whic

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