Question
IN CHINA IT TAKES THREE WORKERS TO MAKE ONE TELEVISION AND FOUR WORKERS TO MAKE ONE DIGITAL CAMERA. IN MALAYSIA IT TAKES SIX WORKERS TO
IN CHINA IT TAKES THREE WORKERS TO MAKE ONE TELEVISION AND FOUR WORKERS TO MAKE ONE DIGITAL CAMERA. IN MALAYSIA IT TAKES SIX WORKERS TO MAKE ONE TELEVISION AND 12 WORKERS TO MAKE ONE DIGITAL CAMERA.
a) who has the absolute advantage in the production of televisions? who has the absolute advantage in the production of digital cameras? How can you tell?
b) Calculate the opportunity cost of producing one additional television set in china and Malaysia.(Your calculation may involve fractions, which is fine). Which country has a comparative advantage in the production of televisions?
c)Calculate the opportunity cost of producing one digital camera in china and in Malaysia. Which country has a comparative advantage in the production of digital cameras?
d) In this example, is absolute the same as comparative advantage ,or not?
e) In what product should china specialise? In what product should Malaysia specialise?
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