Unformatted text preview: absolute advantage in production. In this case however, despite the fact that the US is STILL better at beef production Brazil has the comparative advantage in beef production when compared their extreme inefficiency in computer production in comparison with the United States. ← • Calculations: o OC of Computers = loss in beef/ gain in computers. For the US that is 40/50. For Brazil that is 30/10 In this case the opportunity cost is lower for the US. o OC of Beef = loss in computers/ gain in beef. For the US that is 50/40 For Brazil that is 10/30 In this case the opportunity cost for producing beef is far lower for Brazil than for the US....
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This note was uploaded on 03/20/2008 for the course ECON 2306 taught by Professor Cloud during the Fall '07 term at UGA.
- Fall '07