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Australia and the United States produce Wheat and Soy. Country / Commodity Wheat Soy Austalia 48 kg/person 39 kg/person United States of America 40 kg/person
Australia and the United States produce Wheat and Soy.
Country / Commodity | Wheat | Soy |
Austalia | 48 kg/person | 39 kg/person |
United States of America | 40 kg/person | 24 kg/person |
Assume the number of workers used is the same in each country
a. Which country has an absolute advantage in wheat and soybeans ?
b. If wheat production in the United States is 24 kg/person and soybean production is 40 kg/person assuming the production of wheat and soybeans in Australia is constant (see table). Which Country has a comparative advantage in the production of wheat and soybeans.?
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