The countries of Figistan and Blah are small island countries inthe South Pacific. Both produce...

Question

The countries of Figistan and Blah are small island countries in the South Pacific. Both produce
fruit and timber. Each island has a labor force of 1,200.
The following table gives production per month for each worker in each country.
BASKETS OF FRUIT BOARD FEET OF TIMBER
Figistan workers 10 5
Blah workers 30 10
Productivity of one worker for one month
a. Which country has an absolute advantage in the production of fruit? Which country has an
absolute advantage in the production of timber?
Answer:
We note that Blah workers are more productive in fruit production than Figistan workers. So
Blah has absolute advantage in the production of fruit.
Blah workers are more productive than Figistan workers in the production of Timber as well. So
Blah has comparative advantage in the production of timber.
. Which country has a comparative advantage in the production of...

Robert · Accepted Answer

The countries of Figistan and Blah are small island countries in the South Pacific. Both produce 
fruit and timber. Each island has a labor force of 1,200.  
The following table gives production per month for each worker in each country.  
BASKETS OF FRUIT BOARD FEET OF TIMBER  
Figistan workers  10           5 
Blah workers     30                10 
Productivity of one worker for one month 
a. Which country has an absolute advantage in the production of fruit? Which country has an 
absolute advantage in the production of timber? 
Answer: 
We note that Blah workers are more productive in fruit production than Figistan workers. So 
Blah has absolute advantage in the production of fruit. 
Blah workers are more productive than Figistan workers in the production of Timber as well. So 
Blah has comparative advantage in the production of timber. 
b.

The countries of Figistan and Blah are small island countries inthe South Pacific. Both produce fruit and timber. Each islandhas a labor force of 1,200. The following table gives productionper month...

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