Firm lsquoarsquo can make either 500 flashlights or 2000
Firm ‘A’ can make either 500 flashlights or 2000 batteries.
Firm ‘B’ can make either 650 flashlights or 1500 batteries.
a) Who has comparative advantage in each good?
b) How would they both make themselves better off?
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Firm ‘A’ can make either 500 flashlights or 2000 batteries.Firm ‘B’ can make either 650 flashlights or 1500 batteries.
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