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assume that great britain and the united states can both produce wheat (w) and cloth (c). the amount of wheat and cloth that each nation can produce in one day is presented in the table below. comparative advantage wheat cloth great britain 40 70 united states 150 90 instructions: round your answers to two decimal places. a. use the information above to compute the opportunity cost of producing 1 unit of wheat in each country. for great britain, the opportunity cost of producing 1 unit of wheat is unit(s) of cloth. for the united states, the opportunity cost of producing 1 unit of wheat is unit(s) of cloth. b. which country has the comparative advantage in producing wheat? (click to select) c. use the information above to compute the opportunity cost of producing 1 unit of cloth in each country. for great britain, the opportunity cost of producing 1 unit of cloth is unit(s) of wheat. for the united states, the opportunity cost of producing 1 unit of cloth is unit(s) of wheat. d. which country has the comparative advantage in producing cloth? (click to select)

Respuesta :

Amount of wheat and cloth that each nation can produce in one day is provided, then

a) Wheat production in units of cloths :

In Britain : 1 wheat = 1.75 cloth

In U.S : 1 wheat = 0.60 cloth

b) United States has the comparative advantage in producing wheat.

c) Cloth production in units of wheats :

In Britain : 1 cloth = 0.57 wheat

In U.S : 1 cloth = 1.66 wheat

d) Great Britain has the comparative advantage in producing cloth.

Assume that great britain and the united states can both produce wheat (w) and cloth (c).

One day production table for each country :

wheat. Cloth

Britan 40 70

United States 150 90

a) Britain:

40 wheat = 70 cloth

So, 1 wheat = 70/40 = 1.75cloth

So, opportunity cost to produce 1 unit wheat is

1.75 unit cloths.

United States :

150 wheat = 90 cloths

So, 1 wheat = 90/150 = 0.60 cloth

So, opportunity cost to produce 1 unit wheat is

0.60 unit cloths.

b) U.S has comparative advantage in producing

wheat since it has lower opportunity cost.

c) Britain:

1 cloth = 40/70 = 0.57 wheat

US:

1 cloth = 150/90 = 1.66 wheat

d) Britain has comparative advantage in producing cloth since it has opportunity cost lower.

To learn more about comparative advantage , refer:

https://brainly.com/question/14779319

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