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Resources to the production of steel

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Reference no: EM131651972

Assume that by devoting all of its resources to the production of steel, Japan can produce 50,000 tons of steel, and that by devoting all of its resources to bicycles , Japan can produce 800,000 bicycles . Similarly, by devoting all of its resources to the production of either steel or bicycles , France can produce either 30,000 tons of steel or 200,000 bicycles . In this example __________ (FRANCE OR JAPAN) has an absolute advantage in the production of __________ (STEEL, BOTH STEEL AND BICYCLES, OR BICYCLES)  and a comparative advantage in the production of bicycles .

Reference no: EM131651972

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