12 10 8 6- A 1 2 0 20 40 Autos 60 80 100 Country A should specialize in ship building and Country B should specialize in automotive manufacturing. There are no advantages to trade because the lines are downward sloping. Country A should specialize in automotive manufacturing and Country B should specialize in ship building. There are no advantages to trade because Country A can produce more of both goods.

12 10 8 6- A 1 2 0 20 40 Autos 60 80 100 Country A should specialize in ship building and Country B should specialize in automotive manufacturing. There are no advantages to trade because the lines are downward sloping. Country A should specialize in automotive manufacturing and Country B should specialize in ship building. There are no advantages to trade because Country A can produce more of both goods.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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