Question

The United States and China can both produce cars and computers. If both countries decide to specialize and trade, which of the following must be true

Answer 1

The true statement is that the opportunity cost of producing computers is lower for China than it is for United States must be true.

What Is Opportunity Cost?

Opportunity costs is known to be the specific benefits that a person, investor, or business overlook on if choosing one alternative over another.

Note that in the case above, The true statement is that the opportunity cost of producing computers is lower for China than it is for United States must be true because China are more technologically inclined.

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