3. Absolute and comparative advantageConsider two neighboring island countries, Charisma and Fiatstan. Each has 72,000 labor hours available per week that it can use to produce corn,jeans, or a combination of both. The following table shows the amount of labor hours required to produce 1 bushel of corn or 1 pair of jeans.CornJeansCountry(Labor hours per bushel) (Labor hours per pair)Charisma8016Fiatstan2412has an absolute advantage in the production of corn, andhas an absolute advantage in the productionof jeans.FiatstanInitially, suppose Charisma uses 54,000 hours of labor per week to produce cornCharismaper week to produce jeans, while Fiatstan uses18,000 hours of labor per week to produce corn and 54,000 hours per week to prme there are no other countries willing to tradeneither countrygoods, so in the absence of trade between these two countries, each country consof corn and jeans it produces. 3. Absolute and comparative advantageConsider two neighboring island countries, Charisma and Fiatstan. Each has 72,000 labor hours available per week that it can use to produce corn,jeans, or a combination of both. The following table shows the amount of labor hours required to produce 1 bushel of corn or 1 pair of jeans.CornJeansCountry(Labor hours per bushel)(Labor hours per pair)Charisma8016Fiatstan2412has an absolute advantage in the production of corn, andhas an absolute advantage in the productionNeither countryharisma uses 54,000 hours of labor per week to produce corn and 18,000 hours per week to produce jeans, while Fiatstan usespor per week to produce corn and 54,000 hours per week to produce jeans. Assume there are no other countries willing to tradesence of trade between these two countries, each country consumes the amount of corn and jeans it produces.CharismaFiatstan

Name: 3. Absolute and comparative advantageConsider two neighboring island
Uploaded: 2022-12-02T21:52:30.000Z
Channel: Bartleby
Description: 3. Absolute and comparative advantageConsider two neighboring island countries, Charisma and Fiatstan. Each has 72,000 labor hours available per week that it can use to produce corn,jeans, or a combination of both. The following table shows the amou