
Table 2.9

-Refer to Table 2.9. This table shows the number of labour hours required to produce a motorcycle and a guitar in Ireland and Scotland.
a.Which country has an absolute advantage in the production of motorcycles?
b.Which country has an absolute advantage in the production of guitars?
c.What is Ireland's opportunity cost of producing one motorcycle?
d.What is Scotland's opportunity cost of producing one motorcycle?
e.What is Ireland's opportunity cost of producing one guitar?
f.What is Scotland's opportunity cost of producing one guitar?
g.If each country specialises in the production of the product in which it has a comparative advantage, who should produce motorcycles?
h.If each country specialises in the production of the product in which it has a comparative advantage, who should produce guitars?
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