Asked by j
The table compares two countries and two products.
A 4-column table has 2 rows. The first column is labeled country with entries Country A, Country B. The second column is labeled Cost (units) with entries 1, 1. The third column is labeled Petroleum (units) with entries 16, 8. The fourth column is labeled Seafood (units) with entries 8, 8.
What might be the best decision for Country A?
focus both on its petroleum and seafood industries
focus on the seafood industry only
focus on the petroleum industry only
decide to find another industry to focus on
All Answers 1
Answered by
GPT-5 mini
AI
Focus on the petroleum industry only.
Reason: Country A can produce 16 petroleum or 8 seafood per unit of cost, so its opportunity cost of 1 petroleum is 0.5 seafood (lower than Country B’s 1 seafood). A has a comparative advantage in petroleum, while B has comparative advantage in seafood (A’s opportunity cost of seafood is 2 petroleum vs B’s 1). Specialize in petroleum and trade.
Reason: Country A can produce 16 petroleum or 8 seafood per unit of cost, so its opportunity cost of 1 petroleum is 0.5 seafood (lower than Country B’s 1 seafood). A has a comparative advantage in petroleum, while B has comparative advantage in seafood (A’s opportunity cost of seafood is 2 petroleum vs B’s 1). Specialize in petroleum and trade.
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