1 Which country has an absolute advantage in wine 2 Which country has an absolute advantage in coffee 3 What is the opportunity cost of wine in each country 4 What is the opportunity costs of coffee in each country 5 Which country has comparative advantage in wine 6 Which country has a comparative ...

Labor Hours Required to Produce one unit Coffee Wine Argentina 4 8 Columbia 2 10 1 Coulmbia has ...

1. Which country has an absolute advantage in wine? 2. Which country has an absolute advantage in...

Question:

1. Which country has an absolute advantage in wine?
2. Which country has an absolute advantage in coffee?
3. What is the of wine in each country?
4. What is the opportunity costs of coffee in each country?
5. Which country has comparative advantage in wine?
6. Which country has a comparative advantage in coffee?

Labor Hours Required to Produce One Unit Wine Coffee Argentina 10 Columbia 2.

Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...