- Figure 2 The Ppfs Of Nation 1 And Nation 2 Nation 1 Nation 2 Corn Corn Tons B Pa 1 4 B Bananas Tons Bananas 1 Th 1 (59.08 KiB) Viewed 34 times
Figure 2. The PPFs of Nation 1 and Nation 2 Nation 1. Nation 2 Corn Corn (Tons) B' PA=1/4 B Bananas (tons) Bananas 1) Th
-
answerhappygod
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am
Figure 2. The PPFs of Nation 1 and Nation 2 Nation 1. Nation 2 Corn Corn (Tons) B' PA=1/4 B Bananas (tons) Bananas 1) Th
Figure 2. The PPFs of Nation 1 and Nation 2 Nation 1. Nation 2 Corn Corn (Tons) B' PA=1/4 B Bananas (tons) Bananas 1) The relative price of corn is 4 in Nation 2 and 1/4 in Nation 1, so Nation 1 has comparative advantage in bananas. 2) The relative price of corn is 4 in Nation 1 and 1/4 in Nation 2, so Nation 1 has comparative advantage in corn. 3) The relative price of corn is 14 in Nation 1 and 4 in Nation 2, so Nation 1 has comparative advantage in bananas. 4) The relative price of bananas is 14 in Nation 1 and 4 in Nation 2, so Nation 1 has comparative advantage in bananas. I' A PA'=4