25. Assuming labor is the only resource and England has 60 man-hours (mhrs) and Portugal 180 mhrs of labor resource available for production, which country has the comparative advantage in wine? a) Portugal b) England c) Both d) Neither e) Cannot tell 90England90Portugal8080707060605050PPF40PPF403030202010101020304050601020 30405060clothclothwinewine

Name: 25. Assuming labor is the only resource and England has 60 man-hours (
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Description: 25. Assuming labor is the only resource and England has 60 man-hours (mhrs) and Portugal 180 mhrs of labor resource available for production, which country has the comparative advantage in wine? a) Portugal b) England c) Both d) Neither e) Canno

Comparative advantage is an economy's ability to produce a particular good or service at a lower…

Answered: Assuming labor is the only resource and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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25. Assuming labor is the only resource and England has 60 man-hours (mhrs) and Portugal 180 mhrs of labor resource available for production, which country has the comparative advantage in wine?

		a) Portugal
		b) England
		c) Both
		d) Neither
		e) Cannot tell

90
England
90
Portugal
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70
70
60
60
50
50
PPF
40
PPF
40
30
30
20
20
10
10
10
20
30
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50
60
10
20 30
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60
cloth
cloth
wine
wine

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

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