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Could you please check my homework
Consider two countries, Portugal and England, that produce
two goods, wine and cheese, with only one factor of production, Labor. In Portugal, one unit of labor can produce 2 units of wine or 1 unit of cheese. In England, one unit of labor can produce 2 units of wine or 4 of cheese. There are 100 units of labor in Portugal, and 100 in England. Countries share the same tastes, and there is perfect competition.
1. Fill in the following table:
2. Which country has a an absolute advantage in wine? In cheese? Which country has a comparative advantage in wine? In cheese?
· England has an absolute advantage in cheese
· Portugal has a comperative advantage in wine
· England has a comperative advantage in cheese
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