The formula to calculate the Comparative Advantage is:
\[ \text{CA} = \frac{A}{B} \]
Where:
A comparative advantage is a measure of the monetary advantage a country has over another country due to its natural resources. It reflects the ability of a country to produce a good at a lower opportunity cost compared to another country.
Let's assume the following values:
Using the formula to calculate the Comparative Advantage:
\[ \text{CA} = \frac{100}{50} = 2 \]
The Comparative Advantage (CA) is 2, indicating that Country A has a comparative advantage over Country B.