1
answer
2
watching
1,169
views
29 Sep 2019
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.
Hours Needed
to Make 1
Quantity Produced
in 2400 Hours
Car
Airplane
Cars
Airplanes
Japan
30
150
80
16
Korea
50
150
48
16
1- What is Japan's opportunity cost of one car?
2- Suppose Korea decides to increase its production of cars by 18. What is the opportunity cost of this decision?
3- In what product Japan has an absolute advantage? And in what product Korea has an absolute advantage?
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.
Hours Needed to Make 1 |
Quantity Produced in 2400 Hours |
|||
Car |
Airplane |
Cars |
Airplanes |
|
Japan |
30 |
150 |
80 |
16 |
Korea |
50 |
150 |
48 |
16 |
1- What is Japan's opportunity cost of one car?
2- Suppose Korea decides to increase its production of cars by 18. What is the opportunity cost of this decision?
3- In what product Japan has an absolute advantage? And in what product Korea has an absolute advantage?
Prachi DabasLv10
29 Sep 2019