Table 2-16
| | One Motorcycle | One Guitar |
| Ireland | 10 hours | 2.5 hours |
| Scotland | 9 hours | 2 hours |
Refer to Table 2-16. This table shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland.
a. | Which country has an absolute advantage in the production of motorcycles? |
b. | Which country has an absolute advantage in the production of guitars? |
c. | What is Ireland's opportunity cost of producing one motorcycle? |
d. | What is Scotland's opportunity cost of producing one motorcycle? |
e. | What is Ireland's opportunity cost of producing one guitar? |
f. | What is Scotland's opportunity cost of producing one guitar? |
g. | If each country specializes in the production of the product in which it has a comparative |
advantage, which country should produce motorcycles?
h. | If each country specializes in the production of the product in which it has a comparative |
advantage, which country should produce guitars?
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