England and Scotland both produce scones and sweaters. Suppose that an English works can produce 50 scones per hour or 1 sweater per hour. Suppose that a Scottish worker can produce 40 scones per ho

DO YOU KNOW WHY YOUR FRIENDS ARE POSTING BETTER GRADES THAN YOU? — THEY ARE PROBABLY USING OUR WRITING SERVICES. Place your order and get a quality paper today. Take advantage of our current 15% discount by using the coupon code WELCOME15.


Order a Similar Paper Order a Different Paper

England and Scotland both produce scones and sweaters.  Suppose that an English works can produce 50 scones per hour or 1 sweater per hour.  Suppose that a Scottish worker can produce 40 scones per hour or 2 sweaters per hour.

a.  Which country has the absolute advantage in the production of each good?  Which country has the comparative advantage?

b. If England and Scotland decide to trade, which commodity will Scotland trade to England?  Explain.

c.  If a Scottish worker could produce only 1 sweater per hour, would Scotland still gain from trade? Would England still gain from trade? Explain.

Do you require writing assistance from our best tutors to complete this or any other assignment? Please go ahead and place your order with us and enjoy amazing discounts.


Order a Similar Paper Order a Different Paper