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Question: US Japan Car Production 0 60 120 180 240 Car Production 0 20 40 60 80 TV Production 400 300 200 100 0 TV Production 320 240 160 80 0 Use the tables above to answer questions a-c. They represent the production possibilities of the two countries. For example, if the US produces 400 TVs, it will produce 0 cars.
A) What is the opportunity cost of producing one car in the United States (i.e. how many TVs do you have to give up)? What is the opportunity cost of producing one TV in the United States?
B) What is the opportunity cost of producing one car in Japan? What is the opportunity cost of producing one TV in Japan?
C) Which country has a comparative advantage in car production? What about TV production?
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