0
   

Opportunity cost question

 
 
jabl
 
Reply Sat 29 Aug, 2020 09:49 am
If Austria and Belgium have the following unit labour requirement for producing steel and brooms:

Austria - 3 units for labour for
1 ton of steel and 2 units of labour for 1 broom.
Belgium - 8 units of labour for producing 1 ton of steel and 1 unit of labour for
producing 1 broom. Then

(a) Belgium has a comparative advantage in brooms 
(b) Austria has a comparative advantage in steel.
(c) Austria has an absolute advantage in steel. 
(d) Belgium has an absolute advantage in brooms. 
(e) All the above are correct. 
  • Topic Stats
  • Top Replies
  • Link to this Topic
Type: Question • Score: 0 • Views: 409 • Replies: 1
No top replies

 
Sturgis
 
  2  
Reply Sat 29 Aug, 2020 03:09 pm
That would be correct.
0 Replies
 
 

Related Topics

 
  1. Forums
  2. » Opportunity cost question
Copyright © 2024 MadLab, LLC :: Terms of Service :: Privacy Policy :: Page generated in 0.03 seconds on 04/25/2024 at 05:21:10