Question

Based on information below (2 countries x 2 products), if US has comparative advantage in producing Rice, what can you say about X? (note: figures represent production or output.)Please assume that X is a positive number.Rice CarUS 7 6Korea 9 XX < 4X > 54/7X < 63/7X < 7

Answer 1

Answer:

Check the explanation

Step-by-step explanation:

US has a comparative advantage in producing rice.

This means US's opportunity cost of producing rice is less than that of Korea.

Korea's opportunity cost of producing rice will be given as:

For producing 9 units of Rice, Korea gives up 5 cars.

For producing 1 unit of rice's, Korea will give up 5/9 units of car.

Kindly check the image below.