Question
Table 3-6 Labour hours needed to make 1 unit: Amount produced in 40 hours: Cheese Bread Cheese Bread Denmark 30 120 54 18 Italy 40
Table 3-6
Labour hours needed to make 1 unit: | Amount produced in 40 hours: | |||
Cheese | Bread | Cheese | Bread | |
Denmark | 30 | 120 | 54 | 18 |
Italy | 40 | 160 | 60 | 15 |
Refer to Table 3-6. Which country has an absolute or comparative advantage in each product?
Select one:
a.Denmark has an absolute advantage in bread, and Italy has a comparative advantage in bread.
b.Denmark has an absolute advantage in both goods, and Italy has a comparative advantage in cheese.
c.Denmark has an absolute advantage in bread, and Italy has a comparative advantage in neither good.
d.Denmark has an absolute advantage in cheese, and Italy has a comparative advantage in both goods.
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