A. South Korea should specialize in producing TV sets because it has a lower opportunity cost. B. South Korea should specialize in producing cars because it has a lower opportunity cost. C. Japan and South Korea should both specialize in producing cars because they both have a lower opportunity cost. D. Japan should specialize in producing TV sets because it has a lower opportunity cost.

A. South Korea should specialize in producing TV sets because it has a lower opportunity cost. B. South Korea should specialize in producing cars because it has a lower opportunity cost. C. Japan and South Korea should both specialize in producing cars because they both have a lower opportunity cost. D. Japan should specialize in producing TV sets because it has a lower opportunity cost.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 6PA

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Give an example in which one person has anabsolute advantage in doing something butanother person has a comparative advantage.