Question
The following table shows how many days it takes Country S and Country T to make either one truck or one helicopter. Answer the questions
The following table shows how many days it takes Country S and Country T to make either one truck or one helicopter. Answer the questions that follow, using this data.
Truck | Helicopter | |
Country S | 8 days | 10 days |
Country T | 15 days | 12 days |
Is this an input or an output problem?
Calculate Country S's opportunity cost of making 1 truck.
Calculate Country S's opportunity cost of making 1 helicopter.
Calculate Country T's opportunity cost of making 1 truck.
Calculate Country T's opportunity cost of making 1 helicopter.
Who has the comparative advantage in producing trucks?
Who has the comparative advantage in producing helicopters?
Is 1 truck for 2 helicopters beneficial to both parties? Explain.
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