Assume Totally 800 Units Resources Italy Portugal Resources Required Produce Tomatoes Grap Q34193156

June 27, 2024| admin| 0 Comment| 6:26 pm

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Assume that there are totally 800 units ofresources in both Italy and Portugal. The resourcesrequired to produce tomatoes and grapes in Portugal and Italy, aswell as production and consumption without trade, are shown asbelow.

Table 1 Resources Required toProduce 1 Ton of Tomatoes andGrapes

1 ton of grapes

1 ton of tomatoes

Portugal

20

25

Italy

80

40

Table 2Production and Consumption without Trade ( unit:tons)

Grapes

Tomatoes

Portugal

30

8

Italy

5

10

Which country has absolute advantage in the production oftomato? (1)

Which country has comparative advantage in the production ofgrape? (1)

What should Portugal and Italy specialize in the production of?Please calculate the production with specialization and show yourresults in the

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Assume Totally 800 Units Resources Italy Portugal Resources Required Produce Tomatoes Grap Q34193156

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