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ENGR.ECONOMIC ANALYSIS

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that two countries can both
produce cars and cotton. The opportunity
cost of a car in Country A is 50 units of
cotton and the opportunity cost of a car in
country B is 300 units of cotton. In this
example
a. None of these.
b. Country A has a comparative advantage
in cotton.
c. Country B has a comparative advantage
in cotton.
d. Country A has an absolute advantage in
cotton.
e. Country B has an absolute advantage in
cotton.

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