Brazil and China can produce cotton and soybeans. The labor required to produce a unit of each

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Brazil and China can produce cotton and soybeans. The labor required to produce a unit of each product is shown in the following table:

a) Which country has an absolute advantage in the production of cotton? In the production of soybeans?
b) Which country has a comparative advantage in the production of cotton? In the production of soybeans?

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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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Question Posted: Mar 17, 2016 05:09 AM

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Brazil and China can produce cotton and soybeans. The labor required to produce a unit of each

Question:

Brazilian and Chinese Labor Requirements Cotton (labor-hours Soybeans (labor-hours per unit) per unit) China Brazil 20 10 100 80

Step by Step Answer:

a From the information given in the table Brazil has an absolute advantage in the production of co...View the full answer

Microeconomics

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