One Person Per Day of Labor Produces Country TV Cloth One Person Per Day 8 yards of of Labor Produces USA 10 TV cloth Country TV Cloth CHINA 4 TV 15 yards of cloth USA 10 TV 8 yards of cloth if each country produces to their absolute advantage THE WORLD OUTPUT WOULD BE CHINA 4 TV 15 yards of cloth (Assume TWO Persons per day, so that each product can be fully produced) 14 TV'S. 23 CLOTHS THE WORLD PRICE (RELATIVE PRICES) FOR TV WILL BE: 20TV'S, 30 CLOTHS OOOO BETWEEN 0.B AND 3.75 20TV'S, 15 CLOTHS BETWEEN 1 AND 2 10 TV'S. 4 CLOTHS OOOO BETWEEN 1.25 AND 3.75 BETWEEN 1 AND 3.75 One Person Per Day of Labor Produces Country TV Cloth according to comparative advantages, China should produce what: USA 10 TV 8 yards of Output per hour cloth Computer of "team' OO Steel CHINA 4 TV 15 yards of cloth Country Computer Steel Both (tons) OO should not engage in trade THE WORLD PRICE FOR CLOTH WILL BE Germany 5 10 Clear answer BETWEEN: 1.25 AND 0.26 China 1 BETWEEN: 1.25 AND 3.75 OOOO BETWEEN: 0.8 AND 3.75 Back Next BETWEEN: 1 AND 2