Question
The tables below illustrate production possibilities for Japan and the US in the production of electronic equipment EE) and autos (AU). The following questions are
The tables below illustrate production possibilities for Japan and the US in the production of electronic equipment EE) and autos (AU). The following questions are based on these tables and pertain to Absolute and Comparative Advantage.Assume each country has the same amount of inputs and allocated 50% of its inputs to electronic equipment and 50% to autos. US is producing at "C" (66, 76) and Japan at "T" (96, 18) [middle columns].Answer the following questions regarding Absolute and Comparative Advantage in the production of electronic equipment (EE) or autos (AU).
US Production Possibilities Table:
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