Consider ricardian model with two goods

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Consider a Ricardian model with two goods, cheese C and wine W. The unit labor input requirements are: a LC = 3, a LW = 2, a LC * = 2 , a LW * = 1 (an asterisk denotes a foreign variable). The supply of labor in each country is 10. Assume throughout that the price of good W in each country is equal to 1.

1. Which country has comparative and which absolute advantage in which goods?

Reference no: EM131244690

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