Homework Help Question & Answers

1. Absolute advantage and comparative advantage A AaB Suppose you have the following information on the...


1. Absolute advantage and comparative advantage A AaB Suppose you have the following information on the marginal product of l
1. Absolute advantage and comparative advantage A AaB Suppose you have the following information on the marginal product of labor in rice production and apparel production in Japan and Thailand: Marginal Product of Labor Thailand Rice (bushels per hour) Apparel (units per hour) Complete the following table by computing opportunity costs of each good in terms of units of another good for both countries: Japan Thailand Opportunity cost of rice (units of apparel per bushel) Opportunity cost of apparel (bushels of rice per unit) The information given suggests that Japan has an absolute advantage in the production of that Thailand has an absolute advantage in the production of and The information given suggests that Japan has a comparative advantage in the production of and Thailand has a comparative advantage in the production of_
0 0
Add a comment
Answer #1

Opportunity cost of rice in Japan= 12/15 = 0.8 apparels

Opportunity cost of apparel in Japan = 15/12 = 1.25

Opportunity cost of rice in Thailand = 5/10 = 0.5 apparels

Opportunity cost of apparel in Thailand = 10/5 = 2

The information given suggests that Japan has an absolute advantage in the production of rice and apparel and that Thailand has an absolute advantage in the production of nothing.

The information given suggests that Japan has a competitive advantage in the production of apparels and Thailand has a comparative advantage in the production of rice.

IF YOU FIND THIS ANSWER HELPFUL, PLEASE UP VOTE.

Add a comment
Know the answer?
Add Answer to:
1. Absolute advantage and comparative advantage A AaB Suppose you have the following information on the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coin

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 2. Comparative and absolute advantage Shen and Valerie are farmers. Each one owns a 12-acre plot...

    2. Comparative and absolute advantage Shen and Valerie are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of corn and rye each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing corn or rye or to produce corn on some of the land and rye on the rest. Corn Rye (Bushels per acre) (Bushels per acre) Shen 18 6 Valerie 28 7 On...

  • 2. Comparative and absolute advantage Shen and Valerie are farmers. Each one owns a 12-acre plot...

    2. Comparative and absolute advantage Shen and Valerie are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of barley and alfalfa each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing barley or alfalfa or to produce barley on some of the land and alfalfa on the rest. Barley (Bushels per acre) 18 28 Alfalfa (Bushels per acre) Shen Valerie On the following...

  • Based on the information of the table below, the United Kingdom has an absolute advantage in...

    Based on the information of the table below, the United Kingdom has an absolute advantage in the production of production of and the Rest of the World has an absolute advantage in the a. neither good; corn b. neither good; both goods c. both goods; neither goods d. corn; umbrellas Marginal Product Labor Umbrellas Bushels of corn In rest United of the Kingdom world In 3 1/4 The United Kingdom has a comparative advantage in the production of of the...

  • 2. Comparative and absolute advantage Kenji and Lucia are farmers. Each one owns a 12-acre plot...

    2. Comparative and absolute advantage Kenji and Lucia are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of corn and rye each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing corn or rye or to produce corn on some of the land and rye on the rest. On the following graph, use the blue line (circle symbol) to plot Kenji's production possibilities frontier (PPF),...

  • 2. Comparative and absolute advantage Darnell and Eleanor are farmers. Each one owns a 12-acre plot...

    2. Comparative and absolute advantage Darnell and Eleanor are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of alfalfa and barley each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing alfalfa or barley or to produce alfalfa on some of the land and barley on the rest. Alfalfa (Bushels per acre) 12 15 Barley (Bushels per acre) 6 Darnell Eleanor On the...

  • 2. Comparative and absolute advantage Raphael and produce per year on a given acre. Each farmer...

    2. Comparative and absolute advantage Raphael and produce per year on a given acre. Each farmer chooses whether to devote all acres to producing land and alfalfa on the rest. one owns a 20-acre plot of land. The following table shows the amount of barley and aitalfa each farmer can barley or alifaifa or to produce barley on some of the Barley (Bushels per acre) 20 28 Alfalfa (Bushels per acre) Raphael Susan On the following graph, use the blue...

  • 2. Comparative and absolute advantage Eric and Ginny are farmers. Each one owns a 12-acre plot...

    2. Comparative and absolute advantage Eric and Ginny are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of barley and alfalfa each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing barley or alfalfa or to produce barley on some of the land and alfalfa on the rest. Barley (Bushels per acre) 40 28 Alfalfa (Bushels per acre) 8 Eric Ginny On the...

  • Consider two neighboring island countries called Bellissima and Dolorium. They each have 4 million labor hours...

    Consider two neighboring island countries called Bellissima and Dolorium. They each have 4 million labor hours available per week that they can use to produce jeans, rye, or a combination of both. The following table shows the amount of jeans or rye that can be produced using 1 hour of labor. Country Jeans Rye (Pairs per hour of labor) (Bushels per hour of labor) Bellissima 8 16 Dolorium 5 20 Initially, suppose Bellissima uses 1 million hours of labor per...

  • 6. Comparative advantage Lorenzo and Neha are farmers. Each one owns an 18-acre plot of land....

    6. Comparative advantage Lorenzo and Neha are farmers. Each one owns an 18-acre plot of land. The following table shows the amount of alfalfa and barley each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing alfalfa or barley or to produce alfalfa on some of the land and barley on the rest. Barley (Bushels per acre) Alfalfa (Bushels per acre) 36 20 Lorenzo Neha 10 On the following graph, use the blue...

  • Carlos and Deborah are farmers. Each one owns a 20-acre plot of land. The following table...

    Carlos and Deborah are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of alfalfa and barley each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing alfalfa or barley or to produce alfalfa on some of the land and barley on the rest. [carlos or deborah] has an absolute advantage in the production of alfalfa, and [carlos or deborah]   has an absolute advantage...

Free Homework App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.