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Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364

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BuyFindarrow_forward

Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364
Textbook Problem

Look at Exercise 33.2 . Compute the opportunity costs of producing sweaters and wine in both France and Tunisia. Who has the lowest opportunity cost of producing sweaters and who has the lowest opportunity cost of producing wine? Explain what it means to have a lower opportunity cost.

To determine

To calculate: The absolute advantage both in sweater and wine among the two countries.

Explanation

The given information is below:

    CountrySweaterWine
    France  1 worker  1 worker
    Tunisia  2 workers  3 workers
    CountrySweater per workerWine per worker
    France  1 sweater=1 bottle of wine  <

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