The United States produces 8 units of lumber and 8 automobiles. Canada produces 4 units of lumber and 2 automobiles. Which country has an absolute advantage in producing lumber? Which country has an absolute advantage in producing automobiles? Which country has a comparative advantage, if any, in producing lumber?
The United States produces 8 units of lumber and 8 automobiles. Canada produces 4 units of lumber and 2 automobiles. Which country has an absolute advantage in producing lumber? Which country has an absolute advantage in producing automobiles? Which country has a comparative advantage, if any, in producing lumber?
Chapter28: International Trade
Section: Chapter Questions
Problem 2P
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The United States produces 8 units of lumber and 8 automobiles. Canada produces 4 units of lumber and 2 automobiles. Which country has an
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