Refer to the following table when answering the following questions.
Table 19.1: East and West Fish and Chip Production
-Consider Table 19.1. In autarky, the price of fish in terms of chips is ________ in the West, and in the East the price is ________; therefore, the West has a comparative advantage in ________.

Question

Refer to the following table when answering the following questions.
Table 19.1: East and West Fish and Chip Production 
-Consider Table 19.1. In autarky, the price of fish in terms of chips is ________ in the West, and in the East the price is ________; therefore, the West has a comparative advantage in ________.

Quizplus · Accepted Answer

In autarky, the price of fish in terms of chips is 2 in the West (100/50) and 3 in the East (150/50). This means that the West has a comparative advantage in producing chips since it has a lower opportunity cost of producing chips compared to fish. The East, on the other hand, has a comparative advantage in producing fish since it has a lower opportunity cost of producing fish compared to chips. Therefore, the best choice is (C).

Refer to the Following Table When Answering the Following Questions