Question

Can someone help me with this question, please...
Using the chart, identify an example of comparative advantage for either Country A or B over the United States. Be sure to identify the country with the comparative advantage over the U.S. and product. Explain how the availability and use of a natural resource may impact advantage.

Answer 1

Fan and Medal for anyone who can help me and explain how they got their answer...

Answer 2

it helps to break things down a little bit.

U.S.
1 barrel of oil = 4 hrs
1 ton of coal = 5 hrs

B
1 barrel of oil = 7 hrs
1 ton of coal = 3 hrs

inversely,

U.S.
1hr = 1/4 barrel of oil
1 hr = 1/5 ton of coal

B
1hr = 1/7 barrel of oil
1hr = 1/3 ton of coal

You can see that B has the comparative advantage in coal because 1/3 > 1/5
It means they are better at producing coal than the U.S. because in 1 hour, B can produce 1/3 ton of coal, while the U.S. can only produce 1/5 ton of coal in the SAME AMOUNT OF TIME.

Make sense?

Answer 3

If you have any questions, please let me know.

Answer 4

@inkyvoyd do you know how to answer the part where she asks "Explain how the availability and use of a natural resource may impact advantage."?

Answer 5

@quixoticideals you would just talk about resources. Maybe Country B has the advantage because they have more modern resources and more training for workers.