Suppose the UK has 50 hours of labor available, and the US has 100 hours of labor available. Each can use this labor to produce either cars or bicycles. The UK can produce a car using 10 hours of labor, and a bicycle using 5 hours of labor. The US can produce a car using 5 hours of labor, and a bicycle using 4 hours of labor. Suppose that jointly, the two countries produce 15 bikes and 16 cars. Then it must be that the UK only produces bikes, and the US produces both bikes and cars. the UK produces bikes and cars, and the US only produces cars. the UK only produces cars, and the US only produces bikes. the UK only produces bikes, and the US only produces cars.
Suppose the UK has 50 hours of labor available, and the US has 100 hours of labor available. Each can use this labor to produce either cars or bicycles. The UK can produce a car using 10 hours of labor, and a bicycle using 5 hours of labor. The US can produce a car using 5 hours of labor, and a bicycle using 4 hours of labor. Suppose that jointly, the two countries produce 15 bikes and 16 cars. Then it must be that
the UK only produces bikes, and the US produces both bikes and cars.
the UK produces bikes and cars, and the US only produces cars.
the UK only produces cars, and the US only produces bikes.
the UK only produces bikes, and the US only produces cars.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
