its already answered in this site so you can just just send me by copying itA) With the following data decide which country has comparative advantage for which good.Show your math. Good X Good YCountry A 75 75Country B 60 70 B) Using the data above prove both countries can be better off trading with each other than ifthey do not trade. C)Why do we use comparative advantage to decide which country produces which good?Support your answer.

a. The opportunity cost of producing good X for country A is 75/ 75 = 1 The opportunity cost of…

Answered: ) With the following data decide which…

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains Rrom Trade

Section: Chapter Questions

Problem 6PA

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its already answered in this site so you can just just send me by copying it

A) With the following data decide which country has comparative advantage for which good.

Show your math.

Good X Good Y

Country A 75 75

Country B 60 70

B) Using the data above prove both countries can be better off trading with each other than if

they do not trade.

C)Why do we use comparative advantage to decide which country produces which good?

Support your answer.

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

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