In one hour,the United States can produce 25 tons of steel or 250 automobiles.In one hour,Japan can produce 30 tons of steel or 275 automobiles.This information implies that:

Question

Quizplus · Accepted Answer

Japan has a comparative advantage in the production of automobiles because it gives up less steel production to produce automobiles compared to the United States. Comparative advantage is determined by the opportunity cost of producing one good over another.

In One Hour,the United States Can Produce 25 Tons of Steel