Workers in the country of andalia can produce either 10


Workers in the country of Andalia can produce either 10 tons of cheese or 20 tons of yogurt using a certain quantity of resources. With this same quantity of resources, workers in the country of Barragon can produce either 6 tons of cheese or 18 tons of yogurt.

A. Which country has an absolute advantage in the production of these goods? Explain.

B. Which country has a comparative advantage in the production of yogurt? Explain.

C. Who benefits most from trade between these countries? Explain.

D. What policy would benefit yogurt producers in Andalia? Explain.

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Business Economics: Workers in the country of andalia can produce either 10
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