Maximum Feasible Hourly Producti on Rates for either Tablets or TVs Using All AvailableResources Мezico Product Tablets United States 2 TVs 4. Refer to the above table. Assuming that opportunity costs are constant, which of the following is a correct statement? O Mexico has a comparative advantage in producing both goods. The United States has a comparative advantage in TV production. O The United States has a comparative advantage in producing both goods. O Mexico has a comparative advantage in producing TVs.

Maximum Feasible Hourly Producti on Rates for either Tablets or TVs Using All AvailableResources Мezico Product Tablets United States 2 TVs 4. Refer to the above table. Assuming that opportunity costs are constant, which of the following is a correct statement? O Mexico has a comparative advantage in producing both goods. The United States has a comparative advantage in TV production. O The United States has a comparative advantage in producing both goods. O Mexico has a comparative advantage in producing TVs.

Name: QUESTION 23Maximum Feasible Hourly Production Rates for eitherTablets
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Description: QUESTION 23Maximum Feasible Hourly Production Rates for eitherTablets or TVs Using All AvailableResourcesUnited StatesProductMexicoTabletsTVs6.Refer to the above table. Assuming that opportunity costs are constant, which of the following is a correc

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter33: International Trade

Section: Chapter Questions

Problem 30P: In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10...

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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. Who has the absolute advantage in the production of rubber or radios? How can you tell? Calculate the opportunity cost of producing 80 additional radios in Japan and in Malaysia. (Your calculation may involve fractions, which is fine,) Which country has a comparative advantage in the production of radios? Calculate the opportunity cost of producing 10 additional tons of rubber in Japan and in Malaysia. Which country has a comparative advantage in producing rubber? In this example, does each country have an absolute advantage and a comparative advantage in the same good? In what product should Japan specialize? In what product should Malaysia specialize?
Table 33.15 shows how the average costs of production for semiconductors (the chips In computer memories) change as the quantity of semiconductors built at that factory increases. Based on these data, sketch a curve with quantity produced on the horizontal axis and average cost of production on the vertical axis. How does the curve illustrate economies of scale? If the equilibrium quantity of semiconductors demanded is 90,000, can this economy take full advantage of economies of scale? What about if quantity demanded is 70,000 semiconductors? 50,000 semiconductors? 30,000 semiconductors? Explain how international trade could make it possible for even a small economy to take full advantage of economies of scale, while also benefiting from competition and the variety offered by several producers.
In Germany it takes three workers to make one television and four workers to make one video camera. In Poland It takes six workers to make one television and 12 workers to make one video camera. Who has the absolute advantage in the production of televisions? Who has the absolute advantage in the production of video cameras? How can you tell? Calculate the opportunity cost of producing one additional television set in Germany and In Poland. (Your calculation may involve fractions, which Is tine.) Which country has a comparative advantage in the production of televisions? Calculate the opportunity cost of producing one video camera in Germany and in Poland. Which country has a comparative advantage in the production of video cameras? In this example, is absolute advantage the same as comparative advantage, or not? In what product should Germany specialize? In what product should Poland specialize?
How does comparative advantage lead to gains from trade?