Economic Principles Cialui Combining Principle 2 And Ns Opportunity Cost Trade Absolute Versus Comparative Advantag 1 (30.19 KiB) Viewed 35 times
Economic Principles Cialui Combining Principle 2 And Ns Opportunity Cost Trade Absolute Versus Comparative Advantag 2 (24.17 KiB) Viewed 35 times
Economic Principles (CIALUI Combining Principle #2 and NS: Opportunity Cost & Trade Absolute Versus Comparative Advantage Which country has an absolute advantage in producing Baranas? Producing T-shirts? Original combination of Production Output per Month of Work Bananas T-Shirts Country A Country B Without Specialization With Specialization Output per Month of Work Output per month of Work Bananas T Shirts 1* 10 days (Next 20 days) Bananas (1 month) T-Shirts (1 month) Country A Country A Country B Country B TOTAL TOTAL Therefore, Trade Theory 1
Scenario #2: Country A has absolute advantage in both products With Specialiotion Output per month of Work Without Specialization Output per Month of Work Bananas T-Shirts (1" 10 days) (Next 20 days) Bananas (1 month) T-Shirts (1 month) Country A Country Country A Country TOTAL TOTAL Again, Scenario #26: Now what if they start to trade with each other? With Trade Output per Month of Work T-Shirts Bananas Country A Country B TOTAL Terms of trade
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