Module 8 Chp 35 Problem 4

Module 8 Chp 35 Problem 4 - Canada To produce 6 beefs the...

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Which country has the comparative advantage in beef production? Amount of Beef or Computers Produced by One Worker in a Day Canada Japan Beef 6 5 Computers 2 4 Comparative Advantage: It is defined as a situation in which a country, a person, a region or a company can produce a good at a lower opportunity cost than the competitor.
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Unformatted text preview: Canada: To produce 6 beefs, the opportunity cost is 2 computers. Japan: To produce 5 beefs, the opportunity cost is 4 computers. Therefore, Canada has a lower opportunity cost to produce beefs. Therefore, Canada has the comparative advantage in beef production....
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