Comparative advantage in producing wine

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Suppose Argentina and Brazil each has 10,000 hours/month labor supply, and labor is the only input for production.

In Argentina, it takes 3 hours to produce one kilogram of cheese and 6 hours to produce 1 bottle of wine, whereas in Brazil, it takes 2 hour and 3 hours to produce each kind of commodity.

(1) Which country has the absolute advantage in producing cheese?

(2) Which country has the comparative advantage in producing wine?

Reference no: EM133080322

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