Problem #3 (Show all work: Work Matrix, Op Cost Matrix and Proof) Suppose that Spain and Belgium both produce laptops and crate of broccoli. It takes Spain 2 hours
to produce a laptop and 1 1/2 hours to create a crate of broccoli, while in Belgium it takes them 40
minutes to produce a laptop and 20 minutes to create a crate of broccoli.
1. Construct the work rate matrix and the opportunity cost matrix.
2. Who has the absolute advantage in each task? Who has the comparative advantage in each
task? Who should specialize in which tasks?
3. Assume that Spain and Belgium mandate a 10 hour work day. Calculate production if each
country, spent 5 hours a day producing laptops and 5 hours per day creating crates of
broccoli. How will their total production change if they cooperate and only specialize in one
task for 10 hours according to their comparative advantages? (Workday Proof)