Comparative Advantage Practice Problems Remember to have

Comparative Advantage Practice Problems – Remember to have the comparative advantage you must have the LOWEST OPPORTUNITY COST! Tire Changes (per hour...

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Comparative Advantage Practice Problems – Remember to have the comparative advantage you must have the LOWEST OPPORTUNITY COST!

Ricky

Tire Changes (per hour) 5

Oil Changes (per hour) 3

Bobby

4

2

Who should do tire changes? Who should do oil changes?

U.S.

Trains (per day) 4

Planes (per day) 2

Canada

3

1

Who should produce trains? Who should produce planes?

U.S.

Wheat (bushels) 40

Corn (bushels) 40

Russia

30

10

Who should produce wheat? Who should produce corn?

Norway

Grapes (bushels) 1

Lumber (loads) 12

Italy

10

1

Who should produce grapes? Who should produce lumber?

Chip

Walnuts 5

Pecans 5

Dale

2

2

What is different about this situation? What does this tell us about the potential for trade between Chip & Dale?