Refer to Table 1-1 Which country has a comparative advantage in the production of bread? Group of answer choicesDerrylandWhetonia Assume that Derryland and Whetonia can switch between producing cheese andproducing bread at a constant rate.Table 1-1Labor Hours Needed to Make Number of Units Produced in 401 Unit ofHoursCheeseBreadCheeseBreadDerryland144010Whetonia2208The rest of the questions refer to Table 1-1The opportunity cost of 1 unit of cheese for Derryland in terms of units of bread is

Comparative advantage basically refers to an economy's ability to produce a certain item or service…

Answered: Assume that Derryland and Whetonia can…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Refer to Table 1-1

Which country has a comparative advantage in the production of bread?

Group of answer choices

Derryland

Whetonia

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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Is the maximum that can be made with the resources (i.e., land) the farmer has.
O Can be reached if she specializes and trades with another farmer.
O Does not efficiently use all of the resource available.
O Uses the resources more efficiently, costing the farmer less.
Question 8
Assume that Derryland and Whetonia can switch between producing cheese and producing bread at a constant rate.
4
Derryland
Whetonia
Table 1-1
Question 9
Labor Hours Needed to Make 1 Unit of
Cheese
1
2
hs
Bread
The rest of the questions refer to Table 1-1
The opportunity cost of 1 unit of cheese for Derryland in terms of units of bread is
Q Search
4
5

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