Top Posters
Since Sunday
o
8
8
w
6
E
6
k
6
w
6
J
6
s
5
S
5
a
5
d
5
t
5
New Topic  
denausor denausor
wrote...
Posts: 55
Rep: 0 0
3 months ago
Suppose Spain is currently producing 90 units of wine and 10 units of cheese, but to produce 10 more units of cheese it must sacrifice 30 units of wine. Further, suppose that Portugal produces 45 units of wine and 45 units of cheese, but to produce 10 more units of cheese it must sacrifice only 10 units of wine. It can be concluded that

▸ Spain has a comparative advantage in the production of wine and Portugal has a comparative advantage in the production of cheese.

▸ Spain has an absolute advantage in both wine and cheese production.

▸ Portugal has an absolute advantage in wine production and Spain has an absolute advantage in cheese production.

▸ Portugal has an absolute advantage in both wine and cheese production.

▸ more information is needed to conclude anything about comparative advantage in either country.
Textbook 

Microeconomics


Edition: 17th
Author:
Read 12 times
1 Reply
Replies
Answer verified by a subject expert
danterichdanterich
wrote...
Posts: 60
Rep: 0 0
3 months ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
Spain has a comparative advantage in the production of wine and Portugal has a comparative advantage in the production of cheese.

1

Related Topics

denausor Author
wrote...

3 months ago
This calls for a celebration Person Raising Both Hands in Celebration
wrote...

Yesterday
Brilliant
wrote...

2 hours ago
This site is awesome
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  278 People Browsing
 475 Signed Up Today
Related Images
  
 221
  
 182
  
 188