In Germany, one worker can produce one cuckoo clock or one beer mug. In Taiwan, one worker can produce two cuckoo clocks or thre

Question

SOVA2 [1]

3 years ago

5

In Germany, one worker can produce one cuckoo clock or one beer mug. In Taiwan, one worker can produce two cuckoo clocks or thre

e beer mugs. Who has the comparative advantage in each good

Business

1 answer:

vichka [17] · Answer 1 · 2022-09-03T07:44:45+03:00

The country that has a comparative advantage in the production of cuckoos is Germany.

The country that has a comparative advantage in the production of beer mugs is Taiwan.

A country has a comparative advantage in the production of a good if it produces a good at a lower opportunity cost when compared with other countries.

Germany:

Opportunity cost in the production of cuckoo = 1/1 = 1

Opportunity cost in the production of beer mug = 1 /1 = 1

Taiwan:

Opportunity cost in the production of cuckoo = 3/2 = 1.5

Opportunity cost in the production of beer mug = 2/3 = 0.7

A similar question was answered here: brainly.com/question/14822137