University of California, DavisFOR 50ECN_1A_Homewo

University Of California - Davis

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University of California, DavisFOR 50ECN_1A_Homework

University of California, DavisFOR 50ECN_1A_Homework
Exam (elaborations) • 8 pages • 2022

Homework #1 Question 1 a. To produce 1 pound of grass fed beef NautralBerg gives up 1.50 pounds of organic coffee b. Based on the table we can see that NaturalBerg has absolute advantage in organic coffee but comparative advantage in organic coffee c. Based on comparative advantage OrganicVille should specialize in producing grass fed beef d. If the NaturalBerg and OrganicVille specialize and then trade 50 pounds of organic coffee for 50 pounds of grass fed beef with each other both count...