In one minute, Country B can produce either 1,000 TVs and no computers or 500 computers and no TVs. Similarly, in one minute Country C can produce either 2,400 TVs or 600 computers.
A) Compute the opportunity costs of TVs and computers for each country.
B) Which country has a comparative advantage in producing TVs? Which country has a comparative advantage in producing computers?
C) Also, consider the personal computer industry. Do you think the industry has an upward sloping, downward sloping, or horizontal long-run industry supply curve?