In Italy, an automobile can be produced by 8 workers in one day and a washing machine by
Chapter 0, Problem 1(choose chapter or problem)
In Italy, an automobile can be produced by 8 workers in one day and a washing machine by 3 workers in one day. In the United States, an automobile can be produced by 6 workers in one day, and a washing machine by 2 workers in one day. a. Which country has an absolute advantage in the production of automobiles? In washing machines? b. Which country has a comparative advantage in the production of washing machines? In automobiles? c. What type of specialization results in the greatest gains from trade between the two countries?
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