Please explain in detail how to find comparative advantage I

Please explain in detail how to find comparative advantage. I am so confused.

Problem. There are two countries, France and Germany, in a hypothetical world. Each of these countries are Ricardian economies. Each country is endowed with 100 labor hours. Each country can use labor to produce two goods, cheese and car. The following table shows labor requirements per unit of each good in France and Germany, respectively. Answer questions 1 through 14. Product France Germany Cheese (X)a (h,r (Y) aly 2 Table 1: Labor hours per unit of outputs

Solution

A country has a comparative advantage in producing a good if opportunity cost of producing the good is lower at home than in the other country.

In layman’s language opportunity cost is reward of something that must be sacrificed in order to acquire or achieve or manufacture something else.
the following table shows the opportunity cost of production

product

France

Germany

Cheese

1/2=0.5

0.8/1=0.8

car

2/1=2

1/0.8=1.25

9) France has a comparative advantage in production of cheese because the opportunity cost of production of cheese in France is 0.5 which is less than that of Germany which is 0.8.

10)Germany has a comparative advantage in production of car because the opportunity cost of production of car in Germany is 1.25 which is less than that of France which is 2.0

11) Germany has a comparative disadvantage in production of cheese because the opportunity cost of production of cheese in Germany is 0.8 which is greater than that of France which is 0.5

12) France has a comparative disadvantage in production of car because the opportunity cost of production of car in France is 2.0 which is greater than that of Germany which is 1.25.

to find comparative advantage first find out opportunity cost of goods and if the opportunity cost of a good is lower in home country than in foreign country ,then home country will have a comparative advantage in production of that good and a home country should specialize in it.

product

France

Germany

Cheese

1/2=0.5

0.8/1=0.8

car

2/1=2

1/0.8=1.25

Please explain in detail how to find comparative advantage. I am so confused. Problem. There are two countries, France and Germany, in a hypothetical world. Eac

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