Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. Labor Hours Needed Number of Units to Make 1 Unit of Produced in 40 Hours Cheese Bread Cheese Bread England 1 40 10 Spain 10 England has a comparative advantage in the production of O a. cheese and Spain has a comparative advantage in the production of bread. Ob. neither good and Spain has a comparative advantage in the production of both goods. Oc. both goods and Spain has a comparative advantage in the production of neither good. O d. bread and Spain has a comparative advantage in the production of cheese.
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. Labor Hours Needed Number of Units to Make 1 Unit of Produced in 40 Hours Cheese Bread Cheese Bread England 1 40 10 Spain 10 England has a comparative advantage in the production of O a. cheese and Spain has a comparative advantage in the production of bread. Ob. neither good and Spain has a comparative advantage in the production of both goods. Oc. both goods and Spain has a comparative advantage in the production of neither good. O d. bread and Spain has a comparative advantage in the production of cheese.
Chapter1: Making Economics Decisions
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Transcribed Image Text:Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.
Labor Hours Needed
Number of Units
to Make 1 Unit of
Produced in 40 Hours
Cheese
Bread
Cheese
Bread
England
1
40
10
Spain
10
England has a comparative advantage in the production of
O a.
cheese and Spain has a comparative advantage in the production of bread.
Ob. neither good and Spain has a comparative advantage in the production of both goods.
Oc.
both goods and Spain has a comparative advantage in the production of neither good.
O d. bread and Spain has a comparative advantage in the production of cheese.
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