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A) Turkey produces one kg. of wheat in 12 hours but Russia produces one kg. of wheat in 6 hours. Also Turkey produces one kg.
- A) Turkey produces one kg. of wheat in 12 hours but Russia produces one kg. of wheat in 6 hours. Also Turkey produces one kg. of steel in 42 hours while Russia produces one kg. of steel in 38 hours. According to Ricardo; which county must produce wheat and which country must produce steel? What type of comparative advantage we have in that problem?
B) Turkey produces one kg. of cotton in 5 hours while Egypt produces one kg. of cotton in 3 hours. Turkey produces one T-shirt in 30 hours but Egypt produces one T-shirt in 35 hours. According to Ricardo; which country must produce cotton and which country must produce T-shirts? What type of comparative advantage we have in that problem?
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