Business, 12.04.2021 20:10 kadenbaker4788
The nations of Appleland and Orangeland produce apples and oranges.
In Appleland, there are 100,000 hours of labor available in a month, and it takes 2 hours of labor to produce a barrel of apples, and 4 hours of labor to produce a crate of oranges.
In Orangeland, there are 200,000 hours of labor available in a month, and it takes 4 hours of labor to produce a barrel of apples and 1 hour of labor to produce a crate of oranges.
1. Which country has an absolute advantage in each good?
2. What is the opportunity cost of a crate of oranges in Orangeland?
3. What is the opportunity cost of a crate of oranges in Appleland?
4. Which country has a comparative advantage in each good?
Answers: 1
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The nations of Appleland and Orangeland produce apples and oranges.
In Appleland, there are 100,000...
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