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L) Assume that it takes one hour fora U.S. worker to make computer and ten hours to make a
television. And it takes 20 hours for an Italian worker to make a cemputer and one hour to make
a television a.) Who has the abselute advancage in computers? In televisions? b) Without rak, it
each country wanted to produce one o each, how many hous would it take? c.) What if each
country produced two units of the product in which they have an absolule advnntage and then
engaged in trale with the otr country How many What if each country devoted the number of
hours required in the pre trade world answer) specializing in its absolute zdvantage and then
engaging in trade? IHon many units coukl l cach eountry have avai lable 2Assume that it takes
one haur for a IS. worker to make a computer and ten hoars to make a television. And it takes
1,000 heurs for a Slowland wworser to make a cemputer and 2.000 hours to make a television.
a.) Who has the nhselute advancage in computers? In televisions? b) What is the epportunity cest
for each country to produce each gode.g, how many computers would be forsaken to prudce one
televisicn? In which good does each country have a comparative advanage c.) In this example,
TV's are more costly to produceand presumably more valuable) Let's assume the market price
is 3 PC-1 TV. Without trade, or ach country to produce 3 PCs and TV, how many hours woald it
lake? d) What if each country cnly prodced the prodact in which they have a comparztive gand
then engaged in trade wih the other country? How many heurs woukl it take them te aequire 3
TVy
Solution
1 usa has absolute advantage in computers as it can produce 1 computer just in one hour while as
Italy takes 20 hours to produce same. Italy has comparative advantage in Italy as it takes just one
hour to produce same
2 usa would take 11 hours(1+10) and Italy would take 21 hours (20+1)
3 usa one take 2 hours to produce 2 units of computers and Italy would take 2 hours to produce 2
units of television. Exchanging one computer for 1 television both countries gain use of 1 unit of
both commodities and it takes, 2 for USA and 2 hours for Italy to get use of both commodities
4 usa took 11 hours in part B. By focusing on its absolute advantage it can produce 11 computers
with same time. On the other hand Italy took 21 hours in part B. It can produce 21 televisions if
it focused on absolute advantage. Suppose they exchange 5 computers for 7 Tvs. Then usa would
have 6 computers and 7 Tvs. Italy would have 5 computers and 14 Tvs
Can answer only 4 parts according to chegg policy. Please send other parts as separate question

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  • 1. L) Assume that it takes one hour fora U.S. worker to make computer and ten hours to make a television. And it takes 20 hours for an Italian worker to make a cemputer and one hour to make a television a.) Who has the abselute advancage in computers? In televisions? b) Without rak, it each country wanted to produce one o each, how many hous would it take? c.) What if each country produced two units of the product in which they have an absolule advnntage and then engaged in trale with the otr country How many What if each country devoted the number of hours required in the pre trade world answer) specializing in its absolute zdvantage and then engaging in trade? IHon many units coukl l cach eountry have avai lable 2Assume that it takes one haur for a IS. worker to make a computer and ten hoars to make a television. And it takes 1,000 heurs for a Slowland wworser to make a cemputer and 2.000 hours to make a television. a.) Who has the nhselute advancage in computers? In televisions? b) What is the epportunity cest for each country to produce each gode.g, how many computers would be forsaken to prudce one televisicn? In which good does each country have a comparative advanage c.) In this example, TV's are more costly to produceand presumably more valuable) Let's assume the market price is 3 PC-1 TV. Without trade, or ach country to produce 3 PCs and TV, how many hours woald it lake? d) What if each country cnly prodced the prodact in which they have a comparztive gand then engaged in trade wih the other country? How many heurs woukl it take them te aequire 3 TVy Solution 1 usa has absolute advantage in computers as it can produce 1 computer just in one hour while as Italy takes 20 hours to produce same. Italy has comparative advantage in Italy as it takes just one hour to produce same 2 usa would take 11 hours(1+10) and Italy would take 21 hours (20+1) 3 usa one take 2 hours to produce 2 units of computers and Italy would take 2 hours to produce 2 units of television. Exchanging one computer for 1 television both countries gain use of 1 unit of both commodities and it takes, 2 for USA and 2 hours for Italy to get use of both commodities 4 usa took 11 hours in part B. By focusing on its absolute advantage it can produce 11 computers with same time. On the other hand Italy took 21 hours in part B. It can produce 21 televisions if it focused on absolute advantage. Suppose they exchange 5 computers for 7 Tvs. Then usa would have 6 computers and 7 Tvs. Italy would have 5 computers and 14 Tvs Can answer only 4 parts according to chegg policy. Please send other parts as separate question