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Please refer the photo and help me solve the last two question! Canada has a comparative advantage in producing lumberjack boots. The United States has
Please refer the photo and help me solve the last two question!
Canada has a comparative advantage in producing lumberjack boots. The United States has a comparative advantage in producing lumberjack shirts. Does either country have an absolute advantage in producing both goods? A. Neither country has an absolute advantage in both goods because the United States can produce more boots but Canada can produce more shirts. B. Both countries have an absolute advantage in both goods because they both produce boots and shirts. C. Canada has an absolute advantage in both goods because it can produce more boots and more shirts. .V D. Neither country has an absolute advantage in both goods because Canada can produce more boots but the United States can produce more shirts. E. The United States has an absolute advantage in both goods because it can produce more boots and more shirts. Suppose initially that the United States is consuming 4 boots and 8 shirts and Canada is consuming 12 boots and 4 shirts, as indicated in the gure. Then, suppose the United States and Canada specialize by each only producing the good for which they have a comparative advantage and then trade. In particular, suppose the United States trades Canada half of its production for half of what Canada produces. The United States will have 4' additional shirt(s) after the trade (entera numeric response using an integer) and 14' additional boot(s). At the same time, Canada will be able to consume |:| additional shirt(s) as a result of the trade Quantity of shirts made Quantity of boots madeStep by Step Solution
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