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28 Sep 2019
Consider a Ricardian model with two goods, cheese C and wine W. The unit labor input requirements are: aLC = 3, aLW = 2, aLC * = 2 , aLW * = 1 (an asterisk denotes a foreign variable). The supply of labour in each country is 10. Assume throughout that the price of good W in each country is equal to 1.
1. Which country has comparative and which absolute advantage in which goods?
Consider a Ricardian model with two goods, cheese C and wine W. The unit labor input requirements are: aLC = 3, aLW = 2, aLC * = 2 , aLW * = 1 (an asterisk denotes a foreign variable). The supply of labour in each country is 10. Assume throughout that the price of good W in each country is equal to 1.
1. Which country has comparative and which absolute advantage in which goods?
larryrambo777Lv10
10 Mar 2023
Insha FatimaLv10
28 Sep 2019
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