Thursday, August 13, 2009

In one day, Spain can produce either 1,000 tv sets or 500 computers.?

In one day, Spain can produce either 1,000 tv sets or 500 computers. In one day, Portugal can produce 2,400 tv sets or 600 computers. Which country has the comparative advantage in prodcuing computers?



In one day, Spain can produce either 1,000 tv sets or 500 computers.?norton ghost



Spain: 1 computer = 1000/500 =2 tv sets



Portugal: 1 computer = 2400/600 = 4 tv sets



Spain has the advantage



You cannot compare 1000 to 2400, b/c number of computers is not same.



In one day, Spain can produce either 1,000 tv sets or 500 computers.?software



Spain.



The opportunity cost of specializing in computers is only 1,000 TV sets for Spain, but would be 2,400 TV sets for Portugal.

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