Essay
Suppose in Egypt, the opportunity cost of producing a motor engine is 4 auto bodies. In Morocco, the opportunity cost of producing a motor engine is 2 auto bodies.
a. What is the opportunity cost of producing an auto body for Egypt?
b. What is the opportunity cost of producing an auto body for Morocco?
c. Which country has a comparative advantage in the production of auto bodies?
d. Which country has a comparative advantage in the production of motor engines?
Correct Answer:
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a. For Egypt, the opportunity cost of pr...
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