Answer:
b. 2 cars and 2 airplanes and Korea gained 1 car and 1 airplane.
Explanation:
hours needed units produced in 2,400 hours
Car Airplane Car Airplane
Japan 30 150 80 16
Korea 50 150 48 16
without trade, Japan consumes 50 cars and 6 airplanes
without trade, Korea consumes 27 cars and 7 airplanes
Japan's opportunity cost to produce 1 plane = 150 / 30 = 5 cars
<u>Japan's opportunity cost to produce 1 car</u> = 30 / 150 = 0.2 planes
<u>Korea's opportunity cost to produce 1 plane </u>= 150 / 50 = 3 cars
Korea's opportunity cost to produce 1 car = 50 / 150 = 0.33 planes
Japan will produce 80 cars and Korea 16 airplanes
after trade
Japan will receive 8 airplanes in exchange for 28 cars:
it will have 8 airplanes and 52 cars
Korean will receive 28 cars in exchange for 8 airplanes:
it will have 8 airplanes and 28 cars
