Cashews (pounds) 150 Pakistan 240 Cotton (bolts) Cashews (pounds) 120 Indonesia 320 Cotton (bolts) The figure above shows the production possibilities frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of cotton?
Cashews (pounds) 150 Pakistan 240 Cotton (bolts) Cashews (pounds) 120 Indonesia 320 Cotton (bolts) The figure above shows the production possibilities frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of cotton?
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter16: Gaining From International Trade
Section: Chapter Questions
Problem 8CQ
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