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Mathematics 8 Online
OpenStudy (iwanttogotostanford):

HELP ASAPPP WILL FAN AND MEDAL PLEASE: The table below shows labor-productivity figures in two countries facing constant costs: Picture Refer to the table above. Based on the data provided, it can be deduced that: Country B has the absolute advantage in producing houses Country A has a comparative advantage in producing houses Country B has a comparative advantage in producing houses Country A can produce more meat and houses than country B

OpenStudy (iwanttogotostanford):

OpenStudy (anonymous):

Country A can produce more meat and houses than country B. Country A has the obvious advantage.

OpenStudy (iwanttogotostanford):

are you sure? @ManOfIdiots I've been stuck on this one for a long time.. jus want to be sure!

OpenStudy (anonymous):

It says houses and meat per worker. If each worker can make 40 meat and 80 houses a day... I'm pretty sure they have the advantage. Sue me if I'm wrong.

OpenStudy (iwanttogotostanford):

no I know they would have the advantage, just wondering if I am saying the right vocabulary with it like comparative or absolute

OpenStudy (anonymous):

County A has to trade 2 houses for 1 meat. Country two has to trade 4 houses for one meat. Meat is comparatively cheaper for A and houses are comparatively cheaper for B.

OpenStudy (iwanttogotostanford):

@Redcan so, which one would you say it would be?

OpenStudy (anonymous):

I'd have to look up absolute advantage to rule it out, but B has a comparative advantage in houses, only cost 1/4 meat for an extra house.

OpenStudy (iwanttogotostanford):

A country is said to have absolute advantage over other producers of a product if it is the most efficient producer of that product (thats the def. of absolute)

OpenStudy (iwanttogotostanford):

@Redcan

OpenStudy (anonymous):

humm... A looks to have an abs. advantage then.

OpenStudy (anonymous):

Which isn't an option. :)

OpenStudy (iwanttogotostanford):

I know... thats what I though :-(

OpenStudy (anonymous):

It's a good thing, we know about the comparative advantage. And if "A has abs. advantage" we would have two correct to choose from. now there is only one.

OpenStudy (iwanttogotostanford):

which "one" would that be so far?

OpenStudy (anonymous):

The comparative advantage in houses.

OpenStudy (iwanttogotostanford):

so it would be the second choice or "B'?? you think? Also, can you help me with one more please?:-)

OpenStudy (anonymous):

B produces 1 house for 1/4 meat. A produces 1 house for 1/2 meat.

OpenStudy (anonymous):

sure.

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