Question
1.Justin can produce 40 mugs or 10 bowls in an hour.Mike can produce 20 mugs or 10 bowls in an hour. a.Who has a comparative
1.Justin can produce 40 mugs or 10 bowls in an hour.Mike can produce 20 mugs or 10 bowls in an hour.
a.Who has a comparative advantage in producing mugs?
b.If Justin and Mike specialize in producing the good in which each has a comparative advantage, and then trade mugs and bowls, who gains from the specialization and trade?Why?
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Principles of Economics
Authors: N. Gregory Mankiw
8th edition
1305585127, 978-1305971493, 978-1337516860, 1337516864, 978-0357539200, 978-1305585126
