Question: solve The table below shows the hourly output per worker in two industries in Chile and Argentina. Use this table to answer the following questions

solve

The table below shows the hourly output per worker in two industries in Chile and Argentina. Use this table to answer the following questions Qutput per hour of work Hats Beer Chile 10 6 Argentina 1 2 a. Chile has an absolute advantage in the production of hats, and Chile has an absolute advantage in the production of beer. b. Chile has a comparative advantage in the production of hats, and Argentina has a comparative advantage in the production of beer. . Suppose that Chile and Argentina currently do not trade with each other. Each has 1,000 hours of labor to use for producing hats and beer, and the countries are currently producing the amounts of each good shown in the table below. Using this information, give a numerical example of how Chile and Argentina can both gain from complete specialization and trade. Assume that after trading begins, one hat can be exchanged for one barrel of beer Hats Beer Chile 9,000 600 Argentina 600 800 Complete the table below. The table represents the amount of hats and beer after trading for each country (enter your responses as integer values). Hats Beer _ Chile 9.400 600 Argentina 600 1 '400

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!