Question

Assume that Germany and China can produce beer and cloth. If the MPLc/MPLb for Germany is 2/5 and MPLc/MPLb for China is 1, then Germany should:

Answer 1

Answer:

Assume that Germany and China can produce beer and cloth. If the MPLc/MPLb for

Germany is 2/5 and MPLc/MPLb for China is 1, then Germany and China have a

comparative advantage in:

A) beer and cloth, respectively.

B) beer.

C) cloth.

D) cloth and beer