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Absolute AdvantageThe countries of Bartovia and San Glucose can produce software tools and ...

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Absolute AdvantageThe countries of Bartovia and San Glucose can produce software tools and ...

Absolute Advantage

The countries of Bartovia and San Glucose can produce software tools and comics.

San Glucose	Bartovia
Software tools (in thousands)	Comics (in thousands)	Software tools (in thousands)	Comics (in thousands)
280	0	8	0

210	20	6	10
140	40	4	20
70	60	2	30
0	80	0	40

If San Glucose and Bartovia choose to specialize and trade, then ________.

▸ Bartovia will specialize in software tools

▸ San Glucose will specialize in comics

▸ San Glucose will not choose to trade because it has the absolute advantage

▸ Bartovia will specialize in comics

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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