Suppose that in the United States 4 worker-hours are required to produce each unit of clothing...

Suppose that in the United States 4 worker-hours are required to produce each unit of clothing and each unit of food. In Canada, 1 worker-hour is required for each unit of clothing and 2 worker hours are required for a unit of food. Show your work.

A. Which country has an absolute advantage in each good?

B. Which country has a comparative advantage in each good?

Expert Solution

Rahul Sunny answered 2 years ago

Suppose that in the United States 4 worker-hours are required to produce each unit of clothing...

Suppose that in the United States 4 worker-hours are required to produce each unit of clothing and each unit of food. In Canada, 1 worker-hour is required for each unit of clothing and 2 worker hours are required for a unit of food. Show your work. A. Which country has an absolute advantage in each good? B. Which country has a comparative advantage in each good? C. If the labor force of the United states increases by a factor of...

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Suppose that in the United States 4 worker-hours are required to produce each unit of clothing...

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Suppose that in the United States 4 worker-hours are required to produce each unit of clothing...

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