1. In Italy, an automobile can be produced by 8 workers in one day and a washing...

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1. In Italy, an automobile can be produced by 8 workers in one day and a washing machine by 3 workers in one day. In the United States, an automobile can be produced by 6 workers in one day, and a washing machine by 2 workers in one day.

a. Which country has an absolute advantage in the production of automobiles? In washing machines?

b. Which country has a comparative advantage in the production of washing machines? In automobiles?

c. What type of specialization results in the greatest gains from trade between the two countries?

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Krugmans Economics For AP

ISBN: 9781464122187

2nd Edition

Authors: Margaret Ray, David Anderson

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Question Posted: Oct 02, 2024 11:00 AM

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1. In Italy, an automobile can be produced by 8 workers in one day and a washing...

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Krugmans Economics For AP

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