You are given the following production possibilities table for country A and country B in bread and butter production.
Bread
Butter
A
20
2
B
6
12
1) Which country has an absolute advantage in bread production?
2) Which country has an absolute advantage in butter production?
3) Make an opportunity cost table for the two countries.
4) Which country has a comparative advantage in bread production?
5) Which country has a comparative advantage in butter production?
6) Construct a table of production for the two countries with specialization. What is the total quantity of bread produced and what is the total quantity of butter produced?
7) Write the equation for the production possibility line for country A.
8) If country A chooses to produce 1 unit of butter, what quantity of bread can it produce?
9) Write the equation for the production possibility line for country B.
10) If country B chooses to produce 8 units of butter, what quantity of bread can it produce?
You are given the following production possibilities table for country A and country B in bread and butter production.
| Bread | Butter | |
| A | 20 | 2 |
| B | 6 | 12 |
1) Which country has an absolute advantage in bread production?
2) Which country has an absolute advantage in butter production?
3) Make an opportunity cost table for the two countries.
4) Which country has a comparative advantage in bread production?
5) Which country has a comparative advantage in butter production?
6) Construct a table of production for the two countries with specialization. What is the total quantity of bread produced and what is the total quantity of butter produced?
7) Write the equation for the production possibility line for country A.
8) If country A chooses to produce 1 unit of butter, what quantity of bread can it produce?
9) Write the equation for the production possibility line for country B.
10) If country B chooses to produce 8 units of butter, what quantity of bread can it produce?
