Daily Output of Japan and United States

Table 18.2
-Refer to Table 18.2.Japan has a comparative advantage in the production of

Question

Daily Output of Japan and United States
  
Table 18.2
-Refer to Table 18.2.Japan has a comparative advantage in the production of

Quizplus · Accepted Answer

Japan has a lower opportunity cost in producing stereos compared to the United States (2/3 < 1), indicating that Japan has a comparative advantage in producing stereos. However, the opportunity cost for tractors in Japan is higher than in the United States (3/2 > 1), indicating that the United States has a comparative advantage in producing tractors. Therefore, the best choice is A) stereos.