Assume Russia and the United States each produce only two goods,tanks and automobiles.The values in Table 17.1 represent the maximum amount of each good that can be produced using existing resources.
Table 17.1 - Full-employment output of goods
-Based on the opportunity cost implied in Table 17.1:

Question

Assume Russia and the United States each produce only two goods,tanks and automobiles.The values in Table 17.1 represent the maximum amount of each good that can be produced using existing resources.
Table 17.1 - Full-employment output of goods  
-Based on the opportunity cost implied in Table 17.1:

Quizplus · Accepted Answer

Russia should specialize in the production of automobiles if it has a lower opportunity cost for producing automobiles compared to tanks, allowing it to trade efficiently with the United States.

Assume Russia and the United States Each Produce Only Two