Business, 18.09.2019 21:00 isabellemdeakin

Consider the following table. country a country bbananas 1 5apples 4 2numbers denote hours to produce 1 unitwhat are the world's per-unit gain for bananas if country a and b specialize according to their absolute advantage? what are the world's per-unit gain for apples if country a and b specialize according to their absolute advantage? in order to answer, ask yourself: (1) who the absolute advantage at what? (2) if country a and b specialize according to absolute advantage, who gives up the production of bananas? who gives up the production of apples? (3) how many units of bananas are gained by the country specializing in bananas, any time this country gives up 1 apple? (4) how many units of apples are gained by the country specializing in apples, any time this country gives up 1 banana? (5) finally: the world is composed by country a and country b together. to find the world's per-unit gain, sum up gains and what we give up for both country a and country b, for both bananas and apples. a: 4 extra bananas; 2.5 extra applesb: 1 extra banana; 1 extra applec: not enough informationd: 3 extra bananas; 1.5 extra apples

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Consider the following table. country a country bbananas 1 5apples 4 2numbers denote hours to produc...

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