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    samreenramzan's Avatar
    samreenramzan Posts: 1, Reputation: 1
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    #1

    Sep 2, 2016, 10:01 PM
    Comparative advantage
    Australia can produce 50 barrels of ethanol or 30 tonnes of wheat a day, while the United States can produce 120 barrels of ethanol or 20 tonnes of wheat a day.
    Initially, both Australia and the US spent half a day producing ethanol and half a day producing wheat. However, they now decide to specialise in producing the product that they have a comparative advantage and trade their products in the world market. What are the total gains from trade?
    joypulv's Avatar
    joypulv Posts: 21,593, Reputation: 2941
    current pert
     
    #2

    Sep 3, 2016, 04:06 AM
    We aren't here to write essays for homework. Please tell us what you have so far, and we will contribute.
    Keep in mind that the homework question may assume a premise that isn't necessarily true.
    Show how smart you are by including opposing arguments.

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