To produce 100 bushels of wheat, Farmer Smith uses fewer inputs than Farmer Jones, this means...
To produce 100 bushels of wheat, Farmer Smith uses fewer inputs than Farmer Jones, this means Farmer Smith has an comparative advantage in the production of wheat.
Group of answer choices
True
False
Homework Answers
Because to produce 100 unit of wheat that is to produce an output of 100 unit the input given by the farmer Smith is fewer than the input given by the farmer Jones.
As the input given by the farmer Smith is less than the input given by the farmer Jones to produce the same output we can say that the farmer Smith has an comparative advantage in the production of wheat.
So statement is true.
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