$$~~~{ \text { United States } } ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ { \text { China } } \
\begin{array} { c c c c c }
\text { Possibility } & \text { Radios } & \text { Rice } & \text { Radios } & \text { Rice } \
\text { A } & 200 & 0 & 300 & 0 \
\text { B } & 100 & 500 & 150 & 300 \
\text { C } & 0 & 1,000 & 0 & 600
\end{array}$$
-In the absence of trade between the two countries,the price of rice in China in terms of radios would be

Question

$$~~~{ \text { United States } } ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ { \text { China } } \
\begin{array} { c c c c c } 
\text { Possibility } & \text { Radios } & \text { Rice } & \text { Radios } & \text { Rice } \
\text { A } & 200 & 0 & 300 & 0 \
\text { B } & 100 & 500 & 150 & 300 \
\text { C } & 0 & 1,000 & 0 & 600
\end{array}$$
-In the absence of trade between the two countries,the price of rice in China in terms of radios would be

Quizplus · Accepted Answer

In China, the opportunity cost of producing 150 radios is 300 units of rice (from possibility B), so the price of rice in terms of radios is 150/300 = 1/2.

-In the Absence of Trade Between the Two Countries,the Price