Ask Question
3 July, 18:03

Maldonia has a comparative advantage in the production of sugar, while desonia has a comparative advantage in the production of potatoes. suppose that maldonia and desonia specialize in the production of the goods in which each has a comparative advantage. after specialization, the two countries can produce a total of million pounds of sugar and million pounds of potatoes.

+2
Answers (1)
  1. 3 July, 21:20
    0
    Maldonia must give up 8 units of TEA to get 16 units of lemons, while Desonia must give up 8 units of tea to get 4 get units of lemons. Hence the opportunity cost of productivity are units of lemon for Maldonia - 0.5y (-8/16), and for Desonia it is - 2y (-8/4). This means Maldonia has comparative advantage in producing lemon and Desonia has comparative advantage in tea.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Maldonia has a comparative advantage in the production of sugar, while desonia has a comparative advantage in the production of potatoes. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers