Finding Comparative Advantage. In one minute, Country B can produce either 1,000 TVs and no computers or

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Finding Comparative Advantage. In one minute, Country B can produce either 1,000 TVs and no computers or 500 computers and no TVs. Similarly, in one minute Country C can produce either 2,400 TVs or 600 computers.

a. Compute the opportunity costs of TVs and computers for each country. Which country has a comparative advantage in producing TVs? Which country has a comparative advantage in producing computers?

b. Draw the production possibilities curves for the two countries.

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Macroeconomics Principles Applications And Tools

ISBN: 9780132555494

7th Edition

Authors: Arthur O'Sullivan, Steven M. Sheffrin, Stephen J. Perez

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