Use the following scenario to answer the next four questions:
RayRay and Andrew produce baseballs and golf balls. RayRay can produce six baseballs per hour or four golf balls per hour. Andrew can produce three baseballs per hour or one golf ball per hour.
-Countries engaged in international trade tend to specialize in production based on:

Question

Quizplus · Accepted Answer

Countries tend to specialize in production based on comparative advantage, meaning that they produce goods for which they have a lower opportunity cost compared to other countries.

If RayRay and Andrew were to each specialize in producing the good they have a comparative advantage in, how many baseballs and golf balls could they produce in one hour?

Answer: RayRay could produce 6 baseballs per hour, while Andrew could produce 1 golf ball per hour for a total of 6 baseballs and 1 golf ball per hour.

What is RayRay's opportunity cost of producing one golf ball?

Answer: RayRay's opportunity cost of producing one golf ball is 1.5 baseballs (6 baseballs per hour divided by 4 golf balls per hour).

What is Andrew's opportunity cost of producing one baseball?

Answer: Andrew's opportunity cost of producing one baseball is 1/3 golf balls (1 golf ball per hour divided by 3 baseballs per hour).

Use the Following Scenario to Answer the Next Four Questions