The U.S. and Mexico can produce the amounts of computer chips and textiles indicated in the table below with one unit of land. Each country has 10 units of land. Does either country have an absolute advantage? Which country has a comparative advantage in chip production? Which country has a comparative advantage in textile production? Is it possible for the two countries to benefit from trade?

Question

The U.S. and Mexico can produce the amounts of computer chips and textiles indicated in the table below with one unit of land. Each country has 10 units of land. Does either country have an absolute advantage? Which country has a comparative advantage in chip production? Which country has a comparative advantage in textile production? Is it possible for the two countries to benefit from trade?
The U.S. and Mexico can produce the amounts of computer chips and textiles indicated in the table below with one unit of land. Each country has 10 units of land. Does either country have an absolute advantage? Which country has a comparative advantage in chip production? Which country has a comparative advantage in textile production? Is it possible for the two countries to benefit from trade?

Quizplus · Accepted Answer

The Answer of The U.S. and Mexico can produce the amounts of computer chips and textiles indicated in the table below with one unit of land. Each country has 10 units of land. Does either country have an absolute advantage? Which country has a comparative advantage in chip production? Which country has a comparative advantage in textile production? Is it possible for the two countries to benefit from trade?

The US and Mexico Can Produce the Amounts of Computer Chips