can u help me with this question please, The table shows the costs of producing a unit of food and a unit of clothing in countries X and Y, expressed in the currency of each country. country food clothing X $2 $4 Y £1 £1 The exchange rate is fixed at £1 = $3. What level of transport cost per unit of each commodity would exactly eliminate the benefits of trade? A £0.33 B £0.50 C £1.00 D £1.50
In country X, the opportunity cost of one unit of food is 1/2 unit of clothing. In country Y, the opportunity cost of one unit of food is one unit of clothing. According to the video, which country has a comparative advantage in the production of food?
I have a question, when we divide and we get for example 0.5 would the opportunity cost be 2/4? Also do we have to find the lowest common factor or no?
I want you to think. Please calculate the opportunity cost of shoes for both countries. Which country has a lower opportunity cost in the production of shoes? Then that country has a comparative advantage in the production of shoes.
@@IrisFranz Let say the comparative advantage in the production of shoes is China because the opportunity cost of shoes is lower than US. US=10:5=2 whereas China=2:2=1.
Hi ma'am, the answer would be ..China has comparative advantage of producing shoes. China can produce 1 shoe at the cost of 1 ibuprofen. Whereas, USA can produce 1 shoe at the cost of 2 ibuprofen.
its 2022 bt ur content is still valued
thnks for being a life saver
Your method is fabulous!!!
I really love the way you have simplified the lesson.
Thank you Iris Franz
I salute you professor. You're really good
I'm Grateful to coming across ur channel
Happy learning!
lovely video, thank you!
Thank you, very helpful!
Thank you ,now I understand the meaning of comparative advantage
Thank you so much.. I understood it so well
Lots of love from India ❣️💖
Thank you🙏 simple and clear
Love from Bangladesh.
THANK YOU!
❤
Thank you so much for making this topic understandable!
You’re welcome!
perfect mam 👌
thank you!!
it was the best video i have ever watched about absolute and comparative advantage 🫶
Thank you
thaks
China has comparative advantage shoes and thanks a lot ma’am ❤
Omg u saved my life ❤
Great explanation ma'am
Glad it was helpful!
U are a life saver thank you😘
You're welcome 😊
I was really struggling with this thank you so much
Glad to help!
can u help me with this question please, The table shows the costs of producing a unit of food and a unit of clothing in countries X and Y,
expressed in the currency of each country.
country food clothing
X $2 $4
Y £1 £1
The exchange rate is fixed at £1 = $3.
What level of transport cost per unit of each commodity would exactly eliminate the benefits of
trade?
A £0.33 B £0.50 C £1.00 D £1.50
In country X, the opportunity cost of one unit of food is 1/2 unit of clothing. In country Y, the opportunity cost of one unit of food is one unit of clothing. According to the video, which country has a comparative advantage in the production of food?
oh my god, you look like a chinese famous actor
Excellent ;thnaks
You’re welcome. Happy learning!
Thanks from Bangladesh
You're very welcome!
I have a question, when we divide and we get for example 0.5 would the opportunity cost be 2/4? Also do we have to find the lowest common factor or no?
The opportunity cost of a pair of shoes in the U.S. is 10/5 which is equal to 2 bottles of ibuprofen.
@@IrisFranz have you made a video on exchange rates and how to find it for macroeconomics?
I have a question pls. My question was the Comparative advantage in the production of shoes or Ibuprofen? You said China.
I want you to think. Please calculate the opportunity cost of shoes for both countries. Which country has a lower opportunity cost in the production of shoes? Then that country has a comparative advantage in the production of shoes.
@@IrisFranz hi, you said that if you want to find A, you trick B as the currency . And if I want to find B, I trick A as currency. it is correct.
@@dinasin2745 if you want to find the opportunity cost of A, yes treat B as currency.
@@IrisFranz Let say the comparative advantage in the production of shoes is China because the opportunity cost of shoes is lower than US.
US=10:5=2 whereas China=2:2=1.
hey .. Now i get it.... Are you still making videos on principles of economics?
Absolutely!
Hi ma'am, the answer would be ..China has comparative advantage of producing shoes. China can produce 1 shoe at the cost of 1 ibuprofen. Whereas, USA can produce 1 shoe at the cost of 2 ibuprofen.
That’s correct; nice job!