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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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