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Suppose That the Productivity Per Worker in the Caviar and Salmon

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Essay

Suppose that the productivity per worker in the caviar and salmon industries of Canada and Russia are as follows:  Output in Thousands of Kilograms  Caviar  Salmon  Canada 2 or 3 Russia 4 or 1\begin{array} { l c c c } & \underline{ { \text { Output in Thousands of Kilograms } }} \\ & \text { Caviar } && \text { Salmon } \\\text { Canada } & 2 & \text { or } & 3 \\\text { Russia } & 4 & \text { or } & 1\end{array} a) Which country has the absolute advantage in producing caviar?
b) Which country has the absolute advantage in producing salmon?
c) Which country has the comparative advantage in producing caviar?
d) Which country has the comparative advantage in producing salmon?
e) According to the theory of comparative advantage, will there be trade? If yes, what is the direction of trade?

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Definitions:

Mismatched

Refers to incorrect pairing or alignment, especially in the context of DNA or RNA sequences where base pairs do not properly align.

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Biome characterized by permanently frozen subsoil found between the ice cap and the tree line.

Prairie

A type of ecosystem characterized by vast open landscapes, grasslands, and few trees, often found in North America.

Biomes

Large naturally occurring communities of flora and fauna occupying a major habitat, such as forests or deserts.

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