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 B and for the United States is alternative U. [Note: 1 unit of apparel is 1,000 items and 1 unit of chemicals is 1 ton.] China Production Possibilities Product A B D E F Apparel (in thousands) Chemicals (in tons) 30 24 18 12 6. 6 12 18 24 30 U.S. Production Possibilities Product R S T U V Apparel (in thousands) Chemicals (in tons) 10 8. 6. 4 2 4 12 16 20 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two areas should specialize? Yes If so, what product should each produce? China should produce apparel The United States should produce chemicals
I've already read the answer provided on this site, but it is not giving me the information I need. I understand the math for finding the
From videos I've seen on youtube, they basically state that as long as the cost is less than what the original opportunity cost is, then nations will trade. So, it costs China 4 apparel for every 1 ton of chemicals, and in the US it costs 1 apparel for every 3 tons of chemicals. Am I right to assume that as long as China can trade less than 4 apparel it will benefit, and as long as the US can trade less than 3 tons of chemicals it will benefit?
If so, then what is the math being used to arrive at exactly 1 ton of Chemicals for 1 ton of Apparel for China, and 1 apparel for 2.5 tons of Chemicals for the US? I need to understand the math that is used to calculate such an exact amount.
The answer provided by this site originally states that China would trade as long as it trades less than 4,000 apparel for 1 ton of Chemicals, but then simply says it needs 1000 apparel for 1 ton of chemicals to be beneficial. Where is the math used for that? Technically, wouldn't trading 3,500 apparel also be beneficial? For the US it states that it needs to trade less than 3 tons of chemicals for every 1000 apparel to be beneficial, but then states it is a 1:3 ratio. This whole hypothetical situation seems to be overwhelmingly in China's favor when China went from 4,000 apparel for chemicals to only 1,000 apparel, but the US went from 1,000 apparel for 3 tons of chemicals to 1,000 apparel for 2.5 tons of chemicals. Again, what is the math used, step-by-step, to find such an exact trading ratio? Thanks.
![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 B and for the United States is alternative U. [Note: 1 unit of apparel is 1,000 items
and 1 unit of chemicals is 1 ton.]
China Production Possibilities
Product
A
B
D
E
F
Apparel (in thousands)
Chemicals (in tons)
30
24
18
12
6.
6
12
18
24
30
U.S. Production Possibilities
Product
R
S
T
U
V
Apparel (in thousands)
Chemicals (in tons)
10
8.
6.
4
2
4
12
16
20
Instructions: Enter your answers as whole numbers.
a. Are comparative-cost conditions such that the two areas should specialize?
Yes
If so, what product should each produce?
China should produce apparel
The United States should produce chemicals](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdc8554b9-e88b-4e8a-b10f-52a6c2cc5085%2F9e8fa975-b6a1-4467-8534-75b8e424e85a%2Fo54al3.png&w=3840&q=75)
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