Refer to the following table and assume that in both countries the labor requirements in the table can produce either 2,000 yards of cloth or 2,000 bottles of wine.
Number of workers to produce 2,000 yards of cloth 50 40
Number of workers to produce 2,000 bottles of wine 60 45
a) What is England's unit labor requirement in cloth and wine? What is Portugal's unit labor requirement in cloth and wine? b) What is England's marginal product of labor in cloth and wine? What is Portugal's marginal product of labor in cloth and wine?
c) Which country has an absolute advantage in making cloth? Which one in making wine? Explain your answer.
d) Which country has a comparative advantage in making cloth? Explain your answer.
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