Answered

Westonci.ca offers quick and accurate answers to your questions. Join our community and get the insights you need today. Join our Q&A platform to connect with experts dedicated to providing precise answers to your questions in different areas. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

The table shows the total number of ships and planes two countries could each produce if they fully devoted their economic resources to producing one or the other. The data in the table most support which conclusion?

\begin{tabular}{|l|l|l|}
\cline{2-3}
& \begin{tabular}{c}
Number of ships produced \\
per day
\end{tabular} & \begin{tabular}{c}
Number of planes produced \\
per day
\end{tabular} \\
\hline
Country A & 100 & 50 \\
\hline
Country B & 60 & 20 \\
\hline
\end{tabular}

A. Country A has a comparative advantage producing ships.
B. Country B has an absolute advantage producing planes.
C. Country B has an absolute advantage producing ships.
D. Country A has a comparative advantage producing planes.

Sagot :

GinnyAnswer
To determine which conclusion is most supported by the given data, let's go through what we know step by step.

1. What is opportunity cost?
The opportunity cost of producing one good is the amount of another good that must be given up to produce an additional unit of the first good.

2. Calculate the opportunity costs for Country A:
- Opportunity cost of 1 ship in terms of planes for Country A: \( \frac{\text{Planes}}{\text{Ships}} = \frac{50}{100} = 0.5 \)
- Opportunity cost of 1 plane in terms of ships for Country A: \( \frac{\text{Ships}}{\text{Planes}} = \frac{100}{50} = 2 \)

3. Calculate the opportunity costs for Country B:
- Opportunity cost of 1 ship in terms of planes for Country B: \( \frac{\text{Planes}}{\text{Ships}} = \frac{20}{60} \approx 0.333 \)
- Opportunity cost of 1 plane in terms of ships for Country B: \( \frac{\text{Ships}}{\text{Planes}} = \frac{60}{20} = 3 \)

4. Analysis of Comparative Advantage:
- Comparative advantage in producing ships exists if one country has a lower opportunity cost for producing ships than the other:
Country A’s opportunity cost of producing one ship is 0.5 planes.
 Country B’s opportunity cost of producing one ship is 0.333 planes.
Since 0.333 (Country B) < 0.5 (Country A), Country B has a lower opportunity cost in producing ships.
- Comparative advantage in producing planes exists if one country has a lower opportunity cost for producing planes than the other:
 Country A’s opportunity cost of producing one plane is 2 ships.
Country B’s opportunity cost of producing one plane is 3 ships.
 Since 2 (Country A) < 3 (Country B), Country A has a lower opportunity cost in producing planes.

5. Absolute Advantage:
- Absolute advantage refers to the ability of a country to produce more of a good with the same amount of resources compared to another country.
Country A can produce 100 ships per day, while Country B can produce only 60 ships per day. Therefore, Country A has an absolute advantage in producing ships.
 Country A can produce 50 planes per day, while Country B can produce only 20 planes per day. Therefore, Country A has an absolute advantage in producing planes.

Given this analysis, the most supported conclusion is:

D. Country A has a comparative advantage producing planes.
We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.