Question

Based on your answers to Problem $32-4$, which nation has a comparative advantage in producing digital TVs? Which nation has a comparative advantage in producing bottles of wine?

Short answer

During Fence Empire, there marginal cost of creating a wine glass is smaller than it is in Seaside Region. As either a corollary, little Boundary State has a market advantage in glass bottle making. There in Seaside Region, the actual cost of developing a hdtv is smaller than it is in the Frontier Empire. As either an outcome, Sea Horizon enjoys an economic advantage in manufacturing of monitors.

Step-by-step solution

Introduction

The Frontier Empires have just a west border where its Dazzling Water meets their. First from bank of the River Scelptar as in southward toward the outlet of the Gulf of Wind there in north, around Theymarsh, these beach extends. The Whirlwind River that flows along eastern border both of Fencing Realms, and this artificial barrier goes eastern for about yards to Alamontyr, their eastern side town.

Given Information

In the other phrases, that's the actual cost of both the top pick and indeed the value of both the foremost solution.

The table under covers the overall quantity of Flat screens Mason Jars in the Boundary Dynasty's Shorelines Province.

Explanation

Within Frontier County, the future cost of screens is calculated by the following equation:

You could see from the table well above the:

$\text{Border Kindom Production of Wine Bottles}=300$

$\text{Border Kindom Production ofTVs}=60$

That possibility cost is determined by changing the quantities as in calculation following table:

$\text{Opportunity Cost}=\frac{\text{Coastal Realm Production of Wine Bottles}}{\text{Coastal Realm Production of TVs}}$

$=\frac{300}{60}$

$=5$

As either a corollary, total opportunity of television in Frontier County equals $5$wine containers for set.

Bottles of Border Kingdom

Determine the Pinot Bottles' actual cost in Frontier County already:

$\text{Opportunity Cost}=\frac{\text{Coastal Realm Production ofTVs}}{\text{Coastal Realm Production ofWaterBottles}}$

role="math" $=\frac{60}{300}$

$=0.2$

As either a corollary, total opportunity of Wine containers in Frontier County equals $0.2$television for set.

Explanation of Tv sets

The potential cost of owning screens is assessed through Seaside Horizon by the following equation:

As could see in the column above those:

$\text{Coastal Realm Production of Wine Bottles}=150$

$\text{Coastal Realm Production ofTVs}=50$

The possibility price is estimated by entering these variables there in calculation elsewhere here:

$\text{Opportunity Cost}=\frac{\text{Coastal Realm Production of Wine Bottles}}{\text{Coastal Realm Production of TVs}}$

$=\frac{150}{50}$

$=3$

As both a corollary, total economic cost of either a show in Maritime Horizon for each display about$2$ champagne gallons.

TVs Economic cost

In Seaside Kingdom, the future cost of Glass Containers be determined using the formula:

$\text{Opportunity Cost}=\frac{\text{Coastal Realm Production ofTVs}}{\text{Coastal Realm Production ofWaterBottles}}$

$=\frac{50}{150}$

$=0.33$

As either a conclusion, its glass bottle marginal utility in Seaside Kingdom is $0.33$T.V's every glass bottle.

Result

• That comparative process of manufacturing the glass considerably less for Barrier Imperial than it is in Shore Zone. As either a corollary, little Boundary State has a market advantage in glass bottle making.
• There in Seaside Region, the actual cost of developing a hdtv is smaller than it is in the Frontier Empire. As either an outcome, Sea Horizon enjoys an economic advantage in manufacturing of monitors.