France has absolute advantage in the production oftiles: D: neither grapes nor textiles.(A: grapes; B: textiles: C: both grapes and tex GoodsGrapesTextilesSpain84Note: figures are hours of labor per unit of outputFrance155

Absolute advantage occurs where a country can produce good more efficiently relative to the another…

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France has absolute advantage in the production of (A: grapes; B: textiles: C: both grapes and tex

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

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France has absolute advantage in the production of
tiles: D: neither grapes nor textiles.
(A: grapes; B: textiles: C: both grapes and tex

Goods
Grapes
Textiles
Spain
8
4
Note: figures are hours of labor per unit of output
France
15
5

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