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On planet Economus, the countries Blib and Flib can produce the amounts of string and rope indicated ...

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On planet Economus, the countries Blib and Flib can produce the amounts of string and rope indicated ...

On planet Economus, the countries Blib and Flib can produce the amounts of string and rope indicated in the table below with one unit of land. The country of Blib has 20 units of land available while the country of Flib has 10 units of land. Does either country have an absolute advantage? Which country has a comparative advantage in string production? Which country has a comparative advantage in rope production? Is it possible for the two countries to benefit from trade?

Country   String   Rope
Blib   10   20
Flib   25   10

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Microeconomics

Edition: 8^th

Author: Pindyck

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