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ManagerialEconomicsandGlobalization

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Assessment # 5;STUDENT"S NAME;1.;Comparative Advantage -Productivity and Opportunity Costs: Suppose country A has the;following trade off;Devoting all its resources to production of Bread;Output per day = 4;Devoting all its resources to production of Wine;Output per day = 12;And Country B;Devoting all its resources to production of Bread;Output per day = 2;Devoting all its resources to production of Wine;Output per day = 2;4a) Does any country have absolute advantages in production of both goods? If yes which one?;4b) Is there room for trade (specialization)?;If yes, answer the following question: what would be the direction of trade? i.e. which country;specializes in the production of which good.

 

Paper#26523 | Written in 18-Jul-2015

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