The opportunity costs could be computed as:AircraftCornBeta= 500/1 = 500 corn= 1/500 = 0.002 aircraftGamma= 300/2 = 150 corn= 2/300 = 0.0067 aircraft%|Beta: 1 Aircraft=500 corn, 1 corn=0.002 aircraftGamma: Aircraft=150 corn, 1 corn=0.0067 aircraftGamma would have an absolute advantage in aircraft as they have a higher production capacity. Betawould have an absolute advantage in corn as they have a higher production capacity.Gamma would have a comparative advantage in aircraft as they have lower opportunity costs. Betawould have a comparative advantage in corn as they have lower opportunity costs. 1. Suppose two nations, Beta and Gamma, each make aircraft and corn. The main resource in each nation is hours of"labor". Production occurs in each nation according to the following table. With one hour, a worker in each nation canproduce the following:Table showing Aircraft and Corn producedper hourAircraftCorn500 рerBeta1 per hourhour300 рerGamma2 per hourhour

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Description: The opportunity costs could be computed as:AircraftCornBeta= 500/1 = 500 corn= 1/500 = 0.002 aircraftGamma= 300/2 = 150 corn= 2/300 = 0.0067 aircraft%|Beta: 1 Aircraft=500 corn, 1 corn=0.002 aircraftGamma: Aircraft=150 corn, 1 corn=0.0067 aircraftGa

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1. Suppose two nations, Beta and Gamma, each make aircraft and corn. The main resource in each nation is hours of "labor". Production occurs in each nation according to the following table. With one hour, a worker in each nation can produce the following: Table showing Aircraft and Corn produced per hour Aircraft Corn 500 per Beta 1 per hour hour 300 рer Gamma 2 per hour hour

1. Suppose two nations, Beta and Gamma, each make aircraft and corn. The main resource in each nation is hours of "labor". Production occurs in each nation according to the following table. With one hour, a worker in each nation can produce the following: Table showing Aircraft and Corn produced per hour Aircraft Corn 500 per Beta 1 per hour hour 300 рer Gamma 2 per hour hour

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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