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seems to me Painduvin has a comparative advantage in the production of Bread because producing bread needs less money than producing Wine. Could you explain
seems to me Painduvin has a comparative advantage in the production of "Bread" because producing bread needs less money than producing Wine. Could you explain why the answer for this question is Wine(c). Thank you!
The following cost data is for the mythical land of Painduvin, a capital-abundant country where they produce nothing but bread and Wine using only capital and labor as inputs. 1 unit of Bread 1 unit of Wine Capital Input 5 euros 20 euros Labor Input 4 euros 10 euros 11. Painduvin has a comparative advantage in the production of: a. Both bread and wine. b. Neither bread nor wine. c. Wine. (1. Bread. ANSWER: C
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Global Strategy
Authors: Mike W. Peng
5th Edition
9780357512364
