Assume that the United States uses 20 worker-hours to produce 1 computer and 5 worker-hours to produce 1 unit of food; assume also that Japan uses 10 worker-hours to produce 1 computer and 30 worker-hours to produce 1 unit of food.Which of the following statements is true?

Question

Quizplus · Accepted Answer

The United States has a comparative advantage in food production because it has a lower opportunity cost for producing food compared to Japan. The opportunity cost of producing 1 unit of food in the U.S. is 0.25 computers, while in Japan it is 3 computers.

Assume That the United States Uses 20 Worker-Hours to Produce