In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons of rubber or 40 radios. Calculate the opportunity cost of producing 80 additional radios in Malaysia. Which country has the comparative advantage in producing radios? Calculate the opportunity cost of producing 10 additional tons of rubber in Japan.
In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons of rubber or 40 radios. Calculate the opportunity cost of producing 80 additional radios in Malaysia. Which country has the comparative advantage in producing radios? Calculate the opportunity cost of producing 10 additional tons of rubber in Japan.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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- In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons of rubber or 40 radios.
- Calculate the
opportunity cost of producing 80 additional radios in Malaysia. - Which country has the
comparative advantage in producing radios? - Calculate the opportunity cost of producing 10 additional tons of rubber in Japan.
- Calculate the opportunity cost of producing 10 additional tons of rubber in Malaysia.
- Which country has the comparative advantage in producing rubber?
- In what product should Japan specialize? In what product should Malaysia specialize?
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Here, given information is:
- Japan can either produce 5 tons of rubber or 80 radios, with 1 worker.
- And, Malaysia can either produce 10 tons of rubber or 40 radios, with 1 worker.
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