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Consider two countries, Denmark and the U.K., which both can produce two goods: bacon (B) and clocks (C). Assume that the U.K has 300 labourers
Consider two countries, Denmark and the U.K., which both can produce two goods: bacon (B) and clocks (C). Assume that the U.K has 300 labourers and Denmark 100 labourers. Denmark can produce 1 kilogram of bacon and 2 clocks per day while the U.K can produce 8 kilograms of bacon and 4 clocks per day. (a) Explain which country has the absolute advantage in producing bacon, and which country in clocks
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