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8. Assume there are two countries producing apples and oranges. Each country has many workers. The table gives the number of necessary hours to produce
8. Assume there are two countries producing apples and oranges. Each country has many workers. The table gives the number of necessary hours to produce each. (labor is the only input) A B Apple 8 10 Orange 4 X Where X > 4 8.1) True or False: Country A has an absolute advantage in producing both goods. 8.2) True or False: Country A has comparative advantage in producing apples for any value of X > 5. 8.3) True or False: There exists a value of X such that country A has a strict comparative advantage in producing both goods. 8.4) If X=Y, trade is not welfare increasing for any country. For this sentence to be true, what is the value of Y? Write Y=0 if your answer is "trade is always good for both countries"
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