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1. A worker in the Grand Duchy of Fenwick can produce 20 pounds of cheese in one labor hour, or, using the exact same resources,
1. A worker in the Grand Duchy of Fenwick can produce 20 pounds of cheese in one labor hour, or, using the exact same resources, bake 10 loaves of bread. A worker in Freedonia can produce fifty pounds of cheese in one labor hour, or use the exact same resources to bake 40 loaves of bread. a. In which country does labor have the comparative advantage in making cheese? What about in baking bread? b. If a pound of cheese sells for $2, within what price range would a loaf of bread sell? (Hint: Think about the trade range of cheese for bread.) c. Suppose that in Freedonia, instead of a worker producing 40 loaves of bread, they were only able to produce 25 loaves of bread. Who has the comparative advantage in making cheese now, a worker in the Grand Duchy of Fenwick, or a worker in Freedonia? What about for bread? Explain your
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