if french workers can produce 6 cars per day or 10 pounds of

if french workers can produce 6 cars per day or 10 pounds of cheese and united states workers can produce 4 cars per day or 4 pounds of cheese who should produce what and why? this is a absolute and comparative advantage kind of question

Solution

Definately French workers are at comparative advantage producing 6 cars per day or 10 pounds of cheese .US production is less .

If Japan and the United States can both produce cars, but Japan can produce cars of a higher quality at a faster rate, then it is said to have an absolute advantage in the auto industry. A country\'s absolute advantage or disadvantage in a particular industry plays a crucial role in the types of goods it chooses to produce. In this example, the U.S. may be better served to devote resources and manpower to another industry in which it has the absolute advantage, rather than trying to compete with the more efficient Japan.