Home Unit Labor Requirement Foreign Unit Labor Requirement Fish Beer 3. 8. Which statement is correct? O Home has an absolute advantage in both fish and beer and a comparative advantage in beer. O Foreign has an absolute advantage in both fish and beer and a comparative advantage in beer. O Home has an absolute advantage in both fish and beer and a comparative advantage in neither fish nor beer. O Home has an absolute and comparative advantage fish and Foreign has an absolute and comparative advantage in beer.
Home Unit Labor Requirement Foreign Unit Labor Requirement Fish Beer 3. 8. Which statement is correct? O Home has an absolute advantage in both fish and beer and a comparative advantage in beer. O Foreign has an absolute advantage in both fish and beer and a comparative advantage in beer. O Home has an absolute advantage in both fish and beer and a comparative advantage in neither fish nor beer. O Home has an absolute and comparative advantage fish and Foreign has an absolute and comparative advantage in beer.
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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
Transcribed Image Text:Home Unit Labor Requirement Foreign Unit Labor Requirement
Fish
2
3
Beer
8.
Which statement is correct?
O Home has an absolute advantage in both fish and beer and a comparative advantage
in beer.
O Foreign has an absolute advantage in both fish and beer and a comparative
advantage in beer.
O Home has an absolute advantage in both fish and beer and a comparative advantage
in neither fish nor beer.
O Home has an absolute and comparative advantage fish and Foreign has an absolute
and comparative advantage in beer.
3.
Expert Solution

Step 1
Solution) absolute advantage tend to refer more productive
Here home labor unit requirement is 2 for fish
And 3 for beer
And foreign labour unit requirement 3 for fish 8 for beer
In home we require less labor unit require as compared to foreign
So home is productive
Home is absolute advantage in both fish and beer
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