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The following table gives the output per day in Mexico and Canada in the production of Cars and Trucks. Show all working Output per hour
The following table gives the output per day in Mexico and Canada in the production of Cars and Trucks.
Show all working
Output per hour
Cars Trucks
Mexico 30 20
Canada 24 16
i) Who has absolute advantage in Cars? (2 marks)
ii) Who has absolute advantage in Trucks? (2 marks)
iii) Who has comparative advantage in Cars? (3 marks)
iv) Who has comparative advantage in Trucks? (3 Marks)
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