Week%202%20Lecture%20HO - Wine (Hours per Bottle) Cheese...

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Unformatted text preview: Wine (Hours per Bottle) Cheese (Hours per Pound) England 6 4 France 4 6 In England and France two goods are produced: Wine and Cheese. The hours of labor required in each country to produce a bottle of wine versus and pound of cheese are presented in the table below: Absolute Advantage and Trade Wine (Hours per Bottle) Cheese (Hours per Pound) England 3 4 France 4 6 Suppose the hours required to produce a bottle of wine versus a pound of cheese in these two countries are as follows: Comparative Advantage and Trade Wine (Hours per Bottle) Cheese (Hours per Pound) England 3 4 France 4 6 Comparative Advantage and Trade - 2 Wine (Hours per Bottle) Cheese (Hours per Pound) England 3 4 France 4 6 ENGLAND: FRANCE: 3 3 4 4 Hours Pounds Bottle Hours Bottle Pound = 4 3 Bottle Pound 4 2 3 6 Hours Pounds Bottle Hours Bottle Pound = 3 2 Bottle Pound or or When trade opens, we would expect England to specialize in production of __________ and France to specialize in production of ___________....
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This note was uploaded on 03/28/2012 for the course ECON 252 taught by Professor Robertholand during the Spring '08 term at Purdue University-West Lafayette.

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Week%202%20Lecture%20HO - Wine (Hours per Bottle) Cheese...

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