1) Two countries, A and B, each produce 2 goods, X and Y, using labor. Country A need 2 units of labor to produce a unit of good X and 3 units of labor to produce a unit of good Y. Country B uses 3 units of labor to produce a unit of good X and 4 units of labor to produce a unit of good B. Country A has 1800 units of labor and Bounty B has 1200 units of labor. A: Which country has the relative advantage in the production of each good? Explain. B: If each country specialized in producing the good in which they have the relative advantage how many units of each good would be produced C: If each country used half of their labor to produce good X and half to produce good Y how many units of each good would each country produce? D: Which country has the absolute advantage in the production of each good? Explain.
1) Two countries, A and B, each produce 2 goods, X and Y, using labor. Country A need 2 units of labor to produce a unit of good X and 3 units of labor to produce a unit of good Y. Country B uses 3 units of labor to produce a unit of good X and 4 units of labor to produce a unit of good B. Country A has 1800 units of labor and Bounty B has 1200 units of labor.
A: Which country has the relative advantage in the production of each good? Explain.
B: If each country specialized in producing the good in which they have the relative advantage how many units of each good would be produced
C: If each country used half of their labor to produce good X and half to produce good Y how many units of each good would each country produce?
D: Which country has the
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