Suppose the United States and Japan produce only cell phones and digital music p

Question

Suppose the United States and Japan produce only cell phones and digital music players, like Apple's iPod. Assume that each country uses only labor to produce each good, and that Japanese and U.S cell phones and digital music players are exactly the same Output per Hour of Work Cell Phones 12 Digital Music Players Japan United States Determine the missing opportunity costs in the table below and fill in the missing values. (Enter your responses rounded to one decimal place,) Opportunity Costs Cell Phones Digital Music Players Japan United States 0.5 0.5 From the tables above it is clear thathas an absolute advantage in the production of both goods and that_has a comparative advantage in cell phones, while has a comparative advantage in digital music players. 0 A, the United States,Japan Japan OB, Japan,the United States-Japan O C. the United States,the United States,Japan O D. Japan,Japan,the United States

Explanation / Answer

opportunity cost of Japan for digital music players=12/6=2 cell phone

opportunity cost of United States for cell phones=4/2=2 digital music players

Japan,Japan,the United States

so the answer is D

the above is the answer

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