Business, 24.04.2020 23:42 shelbyetheridge1011s
Suppose that Spain and Germany both produce beer and cheese. Spain's opportunity cost of producing a pound of cheese is 3 barrels of beer while Germany's opportunity cost of producing a pound of cheese is 11 barrels of beer.
By comparing the opportunity cost of producing cheese in the two countries, you can tell that has a comparative advantage in the production of cheese and has a comparative advantage in the production of beer.
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Suppose that Spain and Germany both produce beer and cheese. Spain's opportunity cost of producing a...
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