The domestic opportunity cost of producing a television in the United States is 20 bushels of wheat. In Korea, the domestic opportunity cost of producing a television is 10 bushels of wheat. In this case,

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Both countries have a comparative advantage in a certain product. The United States has a lower opportunity cost of producing wheat, while Korea has a lower opportunity cost of producing televisions. By specializing in their respective comparative advantages and trading with each other, both countries can benefit and achieve mutual gains from trade. The United States can import televisions from Korea at a lower opportunity cost than producing it domestically, and Korea can import wheat from the United States at a lower opportunity cost than producing it domestically.

The Domestic Opportunity Cost of Producing a Television in the United