Problem
The following table shows how many days it takes Country S and Country T to make either one truck or one helicopter. Answer the questions that follow, using this data.
|
|
Truck
|
Helicopter
|
|
Country S
|
8 days
|
10 days
|
|
Country T
|
15 days
|
12 days
|
Task
1. Is this an input or an output problem?
2. Calculate Country S's opportunity cost of making 1 truck.
3. Calculate Country S's opportunity cost of making 1 helicopter.
4. Calculate Country T's opportunity cost of making 1 truck.
5. Calculate Country T's opportunity cost of making 1 helicopter.
6. Who has the comparative advantage in producing trucks?
7. Who has the comparative advantage in producing helicopters?
8. Is 1 truck for 2 helicopters beneficial to both parties? Explain.