wine90807060504030201000 10 20 30 40 50 60clothPortugalPPFCPFwineSERESSAD90Click Save and Submit to save and submit. Click Save All Answers to save all answers.8070605040-30+20O (a) Portugal has the absolute advantage and England has the comparative advantageⒸ (b) England has the absolute advantage and Portugal has the comparative advantageO (c) Neither country has the comparative advantageO (d) Neither country has the absolute advantageO (d) cannot tell from this diagramEnglandPPF1000 10 20 30 40 50 60cloth12. If Portugal has a total of 180 man-hours of resources available for production, while England has only 60, which country has the absolute advantage, and whichcountry has the comparative advantage in wine?CPFMacBook AirSave All A

Answered: 12. If Portugal has a total of 180…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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wine
90
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10
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0 10 20 30 40 50 60
cloth
Portugal
PPF
CPF
wine
SERESSAD
90
Click Save and Submit to save and submit. Click Save All Answers to save all answers.
80
70
60
50
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30+
20
O (a) Portugal has the absolute advantage and England has the comparative advantage
Ⓒ (b) England has the absolute advantage and Portugal has the comparative advantage
O (c) Neither country has the comparative advantage
O (d) Neither country has the absolute advantage
O (d) cannot tell from this diagram
England
PPF
10
0
0 10 20 30 40 50 60
cloth
12. If Portugal has a total of 180 man-hours of resources available for production, while England has only 60, which country has the absolute advantage, and which
country has the comparative advantage in wine?
CPF
MacBook Air
Save All A

Expert Solution

Step 1

Absolute advantage in international trade refers to the fact that a country can produce any particular good in more quantity or at cheaper cost in absolute terms when compared with any other country .

Comparative advantage compares the opportunity cost of production of any particular good rather than absolute cost and the country with lesser opportunity cost in production of any good has comparative advantage in production of that good .

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