QUESTION IMAGE
Question
pregunta 13 (4 puntos)
using this example, choose the answer that best describes the advantage each country has.
| country a | item | country b |
|---|---|---|
| 700 | tractors | 700 |
- a country a has a statistical advantage in tractors and country b has a comparative advantage in eggs.
- b country a has a comparative advantage in eggs and country b has a comparative advantage in tractors.
- c country a has a comparative advantage in tractors and country b has an absolute advantage in eggs.
- d country a has an absolute advantage in tractors and country b has an absolute advantage in eggs.
Both make same tractors (700=700), no absolute advantage here.
Step2: Calculate opportunity cost for comparative advantage
Opportunity cost (OC) of 1 tractor for A: $\frac{5000}{700} \approx 7.14$ eggs.
OC of 1 tractor for B: $\frac{8000}{700} \approx 11.43$ eggs.
A has lower OC for tractors → comparative advantage in tractors.
Step3: Match with options
Only option c fits: A’s comparative advantage in tractors, B’s absolute advantage in eggs.
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Both make same tractors (700=700), no absolute advantage here.
Step2: Calculate opportunity cost for comparative advantage
Opportunity cost (OC) of 1 tractor for A: $\frac{5000}{700} \approx 7.14$ eggs.
OC of 1 tractor for B: $\frac{8000}{700} \approx 11.43$ eggs.
A has lower OC for tractors → comparative advantage in tractors.
Step3: Match with options
Only option c fits: A’s comparative advantage in tractors, B’s absolute advantage in eggs.