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What is japan opportunity cost of one car

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Reference no: EM132405628

Use the following information to answer the questions below: Japan and the U.S. trade airplanes and cars. The columns give how much each worker can make in year when they specialize in either cars or airplanes

Airplanes cars

U.S. 30 150

Japan 50 200

  1. What is Japan's opportunity cost of one car? Of one airplane?
  2. What is the U.S' opportunity cost of one car? Of one airplane?
  3. Who has a comparative advantage in cars, in airplanes?
  4. Should the countries trade and if so what should each country specialize in?
  5. Will everyone gain if Japan and the U.S. trade? Explain your answer

Reference no: EM132405628

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