PRODUCT PER WORKERSOUTH AFRICANIGERIATABLES100 UNITS40 UNITSCHAIRS50 UNITS10 UNITS Calculate the opportunity costs of producing tables in South Africaand in Nigeria. Show your calculations.Which country has an absolute advantage in the production of tables?Justify your answer.Explain which product each of the countries should specialise in andexport. Use the information relating to comparative advantage tosupport your answer.

Given, PRODUCT PER WORKER SOUTH AFRICA NIGERIA TABLES 100 UNITS 40 UNITS CHAIRS 50 UNITS 10…

Answered: PRODUCT PER WORKER SOUTH AFRICA NIGERIA…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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PRODUCT PER WORKER	SOUTH AFRICA	NIGERIA
TABLES	100 UNITS	40 UNITS
CHAIRS	50 UNITS	10 UNITS

Calculate the opportunity costs of producing tables in South Africa
and in Nigeria. Show your calculations.
Which country has an absolute advantage in the production of tables?
Justify your answer.
Explain which product each of the countries should specialise in and
export. Use the information relating to comparative advantage to
support your answer.

Definition Video Definition Ability of a country to produce more output with a given level of input or to produce the same level of output with a lower level of input as compared to the other countries. For example, if Country A produces 200 units with the help of 10 units of labor, and Country B produces 300 units with 10 units of labor, Country A has an absolute advantage in the production of the good. Video

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