Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Congaree's opportunity cost of producing 1 pair of chinos is of pistachios, and Yosemite's opportunity cost of producing 1 pair of chinos is of pistachios.

  1. Congaree's opportunity cost of producing 1 pair of chinos is of pistachios, and Yosemite's opportunity cost of producing 1 pair of chinos is of pistachios. Therefore, has a comparative advantage in the production of chinos, and has a comparative advantage in the production of pistachios.
  2. Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces chinos will produce
  3. million pairs per week, and the country that produces pistachios will produce
  4.  
  5. million pounds per week.
  6.  

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Economics Social Issues And Economic Thinking

Authors: Wendy A. Stock

1st Edition

047057478X, 9780470574782

More Books

Students also viewed these Economics questions

Question

What does the word trophic mean?

Answered: 1 week ago