21 Jul WHICH COUNTRY SHOULD SPECIALIZE IN COMPUTERS?
Table 1. Production Possibilities for the US and Japan. Computers Cars US 100 50 Japan 50 40 Show more Table 1. Production Possibilities for the US and Japan. Computers Cars US 100 50 Japan 50 40 a) Using the information in Table 1 draw each countrys Production Possibilities Frontier (PPF) and calculate each countrys opportunity cost of producing cars and computers.b) Using your results in (a) determine which country should specialize in the production ofcars and which should specialize in the production of computers and how the twocountries can trade Answer: a) Production Possibilities Frontiers for: US and Japan Opportunity Costs Opportunity opportunity cost of compters in terms of cars oppertunity cost of cars in terms of computer US Japan b) Which country should specialize in Computers? __________________________ Which country should specialize in cars? _______________________________How should they trade? (Explain and one or two sentences) Show less
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