Module 8 Chp 35 Problem 5

Module 8 Chp 35 Problem 5 - Canada: To produce 2 computers,...

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5. Which country has the comparative advantage in computer 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 2 computers, the opportunity cost is 6 Beefs. Japan: To produce 4 computers, the opportunity cost is 5 Beefs. Therefore, Japan has a lower opportunity cost to produce computers. Therefore, Japan has the comparative advantage in computer production....
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This note was uploaded on 08/04/2011 for the course ECN 601 taught by Professor Professor during the Spring '10 term at Grand Canyon.

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Module 8 Chp 35 Problem 5 - Canada: To produce 2 computers,...

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