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Explain to the customer the features of more than one tv and the costs of each?

User RedFred
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Final answer:

Germany has a comparative advantage in the production of televisions.

Step-by-step explanation:

In order to determine the comparative advantage in the production of televisions between Germany and Poland, we need to calculate the opportunity cost of producing one additional television set in each country.

The opportunity cost is defined as the value of the next best alternative foregone. Let's assume that Germany can produce 3 televisions or 4 video cameras, while Poland can produce 2 televisions or 3 video cameras in the same amount of time.

For Germany, the opportunity cost of producing one additional television set is 4/3 video cameras, while for Poland, it is 3/2 video cameras. Since Germany has a lower opportunity cost (4/3 < 3/2) in terms of video cameras, it has a comparative advantage in the production of televisions.

It is important to note that comparative advantage is determined by comparing opportunity costs, while absolute advantage is determined by comparing the productivity of a country in producing a good or service.

User Joselle
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