Which commodity will scotland trade to england

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enliand and Scotland both produce scones and sweaters.Suppose that an English worker can produce 50 scones per hour or 1 sweater per hour. suppose that a Scottish worker can produce 40 scones per hour or 2 sweaters per hour.

1. which country has the absolute advantage in production of each good ? Which country has the comparative advantage?

2. If England and Scotland decide to trade ,which commodity will Scotland trade to England?

3. If a Scotland worker could produce only 1 sweater per hour, would Scotland still gain from trade ? Would England still gain from trade?

Reference no: EM13237906

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