Question
The US, Mexico, and Canada all produce steel and corn. The table below shows the total production for each good if the country specialized in
The US, Mexico, and Canada all produce steel and corn. The table below shows the total production for each good if the country specialized in that good. The units for the opportunity cost of producing corn will be ________("bushels of corn per ton of steel," "tons of steel per bushel of corn.")Fill in the opportunity cost of producing corn (just the value, no units) for each country in the table below. (Include two decimal places.)
Country | Steel | Corn | OC of corn |
---|---|---|---|
US | 1000 tons | 1000 bushels | _______ |
Mexico | 100 tons | 500 bushels | ________ |
Canada | 700 tons | 100 bushels | _________ |
The US has the absolute advantage in producing ________("neither corn nor steel," "steel and corn," "corn" or "steel.") ________("More than one country," "Canada," "Mexico," or "The US") has a comparative advantage in producing corn. _________ ("More than one country," "Canada," "Mexico," or "The US") has a comparative advantage in producing steel.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started