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Tidy Tidy
wrote...
Posts: 4852
7 years ago
Suppose in the United States, the opportunity cost of producing a motor engine is 4 auto bodies. In Canada, the opportunity cost of producing a motor engine is 2 auto bodies.
a.    What is the opportunity cost of producing an auto body for the United States?
b.    What is the opportunity cost of producing an auto body for Canada?
c.    Which country has a comparative advantage in the production of auto bodies?
d.    Which country has a comparative advantage in the production of motor engines?
Textbook 

Essentials of Economics


Edition: 4th
Authors:
Read 357 times
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SmooothSmoooth
wrote...
Top Poster
Posts: 5500
7 years ago
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More solutions for this book are available here
a.    For the United States, the opportunity cost of producing an auto body is 1/4 of a motor engine. 
b.    For Canada, the opportunity cost of producing an auto body is 1/2 of a motor engine.
c.    The United States has a comparative advantage in the production of auto bodies.
d.    Canada has a comparative advantage in the production of motor engines. 
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wrote...
7 years ago
No problemo Happy Dummy
wrote...
2 months ago
Thanks!
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