Discussion:
suppos that companies in the usa can produce a car with 200 labor hours and a ton of rice with 20 labor hours. In China , it takes 250 cost labor hours to make a car and 50 labor hours to grow a ton of rice. What is the opportunity
cost of producing rice in each country,stated in terms of cars? What is the opportunity cost of cars stated in terms of rice? Which country has acomparative advantage in cars? Which in rice?