MyLab Economics with Pearson eText -- Access Card -- for Microeconomics
MyLab Economics with Pearson eText -- Access Card -- for Microeconomics
6th Edition
ISBN: 9780134125886
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 9, Problem 9.2.6PA
To determine

Calculation of opportunity cost.

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The table below describes production possibilities for Mexico and Nigeria. Each number in the table shows the number of workers needed to produce one unit of the product. Country Shoes Glasses Mexico 10 12 Nigeria 18 5   Which country should be specializing in the production of Glasses? Which country should be specializing in the production of Shoes? Which country should be exporting Shoes? Which country should be exporting Glasses?
Please use the following table to select the right choice. Country England Portugal Hours of work necessary to produce one unit Cloth Wine 100 120 90 80 England has absolute advantage in producing cloth. O England has no comparative advantage in either of the products. England has comparative advantage in producing cloth. Portugal has no comparative advantage in either of the products.
Which country had an absolute advantage in the production of Machines?  Calculate and explain which country has a comparative advantage in the production of Machines and Cloth.
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