Problem 19-03 (algo) The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative D and for the United States is alternative S. China Production Possibilities ok Product A B D E F Apparel 80,000 64,000 int Chemicals (tons) 0 32 48,000 64 32,000 96 16,000 128 160 rences Product Apparel Chemicals (tons) U.S. Production Possibilities R 240,000 0 S T 192,000 144,000 48 96 U 96,0000 144 W 48,000 0 192 240 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two countries should specialize? Yes If so what product should each produce?
Problem 19-03 (algo) The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative D and for the United States is alternative S. China Production Possibilities ok Product A B D E F Apparel 80,000 64,000 int Chemicals (tons) 0 32 48,000 64 32,000 96 16,000 128 160 rences Product Apparel Chemicals (tons) U.S. Production Possibilities R 240,000 0 S T 192,000 144,000 48 96 U 96,0000 144 W 48,000 0 192 240 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two countries should specialize? Yes If so what product should each produce?
Chapter1: Making Economics Decisions
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Transcribed Image Text:Problem 19-03 (algo)
The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and
trade the optimal product mix for China is alternative D and for the United States is alternative S.
China Production Possibilities
ok
Product
A
B
D
E
F
Apparel
80,000
64,000
int
Chemicals (tons)
0
32
48,000
64
32,000
96
16,000
128
160
rences
Product
Apparel
Chemicals (tons)
U.S. Production Possibilities
R
240,000
0
S
T
192,000 144,000
48
96
U
96,0000
144
W
48,000
0
192
240
Instructions: Enter your answers as whole numbers.
a. Are comparative-cost conditions such that the two countries should specialize?
Yes
If so what product should each produce?
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