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Who has the absolute advantage in the production of wheat

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Reference no: EM132121796

Assume Nebraska and Virginia each have 100 acres of farmland. The following table gives hypothetical figures for yield per acre in the two states:

                                 Nebraska               Virginia

  Wheat                          14                           2

  Cotton                          15                           3

A)

Who has the absolute advantage in the production of wheat?

Who has the absolute advantage in the production of cotton?

Who has the comparative advantage in the production of wheat?

Who has the comparative advantage in the production of cotton?

Reference no: EM132121796

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