Based on your answers to Problem 31-4, which nation has a comparative advantage in producing 8K TVs? Which nation has a comparative advantage in producing bottles of wine?

Problem 31-4

Residents of the nation of Border Kingdom can forgo production of 8K televisions and utilize all available resources to produce 300 bottles of high-quality wine per hour. Alternatively, they can forgo producing wine and instead produce 60 8K TVs per hour. In the neighboring country of Coastal Realm, residents can forgo pro- duction of 8K TVs and use all resources to produce 150 bottles of high-quality wine per hour, or they can forgo wine production and produce 50 8K TVs per hour. In both nations, the opportunity costs of producing the two goods are constant.

a. What is the opportunity cost of producing 8K TVs in Border Kingdom? Of producing bottles of wine in Border Kingdom?

b. What is the opportunity cost of producing 8K TVs in Coastal Realm? Of producing bottles of wine in Coastal Realm?