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