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Tidy Tidy
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9 years ago
Suppose in the Germany, the opportunity cost of producing a gallon of beer is 5 gallons of wine. In Italy, the opportunity cost of producing a gallon of beer is 3 gallons of wine.
a.    What is the opportunity cost of producing a gallon of wine for Germany?
b.    What is the opportunity cost of producing a gallon of wine for Italy?
c.    Which country has a comparative advantage in the production of beer?
d.    Which country has a comparative advantage in the production of wine?
Textbook 
Essentials of Economics

Essentials of Economics


Edition: 4th
Authors:
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DropxDropx
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9 years ago
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9 years ago
Thanks for the feedback Slight Smile
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