The following table shows the quantity of wine or cloth that can be produced in California and Texas when all the resources are devoted to the production of each good.The states have identical resources.

Refer to the table above.Identify the absolute and comparative advantage enjoyed by both states.Which state should specialize in the production of which good? Determine the range of terms of trade between the two states.

Question

The following table shows the quantity of wine or cloth that can be produced in California and Texas when all the resources are devoted to the production of each good.The states have identical resources.
  
Refer to the table above.Identify the absolute and comparative advantage enjoyed by both states.Which state should specialize in the production of which good? Determine the range of terms of trade between the two states.

Quizplus · Accepted Answer

The Answer of The following table shows the quantity of wine or cloth that can be produced in California and Texas when all the resources are devoted to the production of each good.The states have identical resources.
  
Refer to the table above.Identify the absolute and comparative advantage enjoyed by both states.Which state should specialize in the production of which good? Determine the range of terms of trade between the two states.

The Following Table Shows the Quantity of Wine or Cloth