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
Country A can produce more meat and houses than country B. Country A has the obvious advantage.
are you sure? @ManOfIdiots I've been stuck on this one for a long time.. jus want to be sure!
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.
no I know they would have the advantage, just wondering if I am saying the right vocabulary with it like comparative or absolute
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.
@Redcan so, which one would you say it would be?
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.
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)
@Redcan
humm... A looks to have an abs. advantage then.
Which isn't an option. :)
I know... thats what I though :-(
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.
which "one" would that be so far?
The comparative advantage in houses.
so it would be the second choice or "B'?? you think? Also, can you help me with one more please?:-)
B produces 1 house for 1/4 meat. A produces 1 house for 1/2 meat.
sure.
Join our real-time social learning platform and learn together with your friends!