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
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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.
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