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Author Question: Table 2-12Digital CameraWheat (bushels)China100 hours5 hoursSouth Korea90 hours3 hoursRefer to Table ... (Read 149 times)

Mr. Wonderful

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Table 2-12

Digital CameraWheat (bushels)
China100 hours5 hours
South Korea90 hours3 hours

Refer to Table 2-12. This table shows the number of labor hours required to produce a digital camera and a bushel of wheat in China and South Korea.

a.

Which country has an absolute advantage in the production of digital cameras?

b.

Which country has an absolute advantage in the production of wheat?

c.

What is China's opportunity cost of producing one digital camera?

d.

What is South Korea's opportunity cost of producing one digital camera?

e.

What is China's opportunity cost of producing one bushel of wheat?

f.

What is South Korea's opportunity cost of producing one pound of wheat?

g.

If each country specializes in the production of the product in which it has a comparative
advantage, who should produce digital cameras?

h.

If each country specializes in the production of the product in which it has a comparative
advantage, who should produce wheat?


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Marked as best answer by Mr. Wonderful on Oct 5, 2019

helenmarkerine

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