Professional Documents
Culture Documents
RicardianModel Slides
RicardianModel Slides
Labor Productivity
and Comparative
Advantage: The
Ricardian Model
Preview
aLC /aLW
– no wine is produced.
Cheese
Wine
Home
aLC = 1 hour/lb
aLW = 2 hours/gallon
Foreign
a*LC = 6 hours/lb
a*LW = 3 hours/gallon