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The table below shows the hourly:r output per worker in two industries in Chile and Argentina. Use this table to answer the following questions. Output
The table below shows the hourly:r output per worker in two industries in Chile and Argentina. Use this table to answer the following questions. Output per hour of work Hats Beer Chile 1i] 3 Argentina '1 2 a. has an absolute advantage in the production of hats, and has an absolute advantage in the production of beer. b. has a comparative advantage in the production of hats, and has a comparative advantage in the production of beer. c. Suppose that Chile and Argentina currently do not trade with each other. Each has 1,l]E|E| hours of labor to use for producing hats and beer, and the countries are currently producing the amounts of each good shown in the table below. Using this intormatiom give a numerical example of how Chile and Argentina can both gain from complete specialization and trade. Assume that alter trading begins, one hat can be exchanged for one banel of beer. Hats Beer Chile 9,00!) Sill] Argentina Bill] 400 Complete the table below. The table represents the amount of hats and beer after trading for each country [enieryour responses as integer values]. Hats Beer Chile D aoo Argentina 80!] D
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