(Absolute and Comparative Advantage)You have the following information concerning the production of wheat and cloth in the United States and the United Kingdom: a. What is the opportunity cost of producing a unit of wheat in the United Kingdom? In the United States? b. Which country has an absolute advantage in producing wheat? In producing cloth? c. Which country has a comparative advantage in producing wheat? In producing cloth? d. Which country should specialize in producing wheat? In producing cloth?

Question

(Absolute and Comparative Advantage)You have the following information concerning the production of wheat and cloth in the United States and the United Kingdom:

a. What is the opportunity cost of producing a unit of wheat in the United Kingdom? In the United States?

b. Which country has an absolute advantage in producing wheat? In producing cloth?

c. Which country has a comparative advantage in producing wheat? In producing cloth?

d. Which country should specialize in producing wheat? In producing cloth?

 

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