Now assume that a country a takes 100 hours to produce 20


Now assume that a country A takes 100 hours to produce 20 aircraft or 10 jet engines and country B takes 100 hour to produce 15 aircraft or 5 jet engines.

Which country has an absolute advantage in which product?

Does either country have a comparative advantage in one of the product?

Can trade takes place between the two countries?

What would be the limit of the terms of trade if it were to take place ?

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Basic Computer Science: Now assume that a country a takes 100 hours to produce 20
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