Which country enjoys a comparative advantage in food


Question:

Suppose that each U.S worker can produce 8 units of food or 2 units of clothing daily. Fredonia, which has the same number of workers, each worker can produce 7 units of food or 1 unit of clothing daily. Why does the United States have an absolute advantage in both goods. Which country enjoys a comparative advantage in food? Why?

Solution Preview :

Prepared by a verified Expert
Macroeconomics: Which country enjoys a comparative advantage in food
Reference No:- TGS02103806

Now Priced at $20 (50% Discount)

Recommended (94%)

Rated (4.6/5)