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

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12. 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 pattern of specialization results in the greatest gains from trade between the two countries?

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Economics

ISBN: 978-0716771586

2nd Edition

Authors: Paul Krugman ,Robin Wells

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Question Posted: Oct 02, 2024 01:00 AM

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

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Economics

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