Question
The table below shows how many Cars or Beams can be produced daily by one worker in Antigua and St. Martin. Daily Output per Worker
The table below shows how many Cars or Beams can be produced daily by one worker in Antigua and St. Martin.
Daily Output per Worker
Antigua Cars 38 Beams 5
St. Martin Cars 33 Beams 8
A) Based on the above production schedule, which country should produce each product under Absolute Advantage?
Antigua should produce________
St. Martin should produce_________
B) Based on the above, calculate the opportunity costs of the products in each country.Enter all answers to three decimal places.
Antigua
Number of Cars given up to produce 1 Beam:________
Number of Beams given up to produce 1 Car: _________
Saint Martin
Number of Cars given up to produce 1 Beam: _________
Number of Beams given up to produce 1 Car: _________
C) Based on your calculations in Part B, which country should produce which product under Comparative Advantage?
Antigua should produce_______
St. Martin should produce_______
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