If Korea is capable of producing either shoes or soccer balls or some combination of the two, then Select one: a. Korea should specialize in the product in which it has an absolute advantage. b. it would be impossible for Korea to have an absolute advantage over another country in both products. c. it would be difficult for Korea to benefit from trade with another country if Korea is efficient in the production of both goods. d. Korea's opportunity cost of shoes is the inverse of its opportunity cost of soccer balls.

Question

Business

Coco

9 October, 02:45

If Korea is capable of producing either shoes or soccer balls or some combination of the two, then Select one: a. Korea should specialize in the product in which it has an absolute advantage. b. it would be impossible for Korea to have an absolute advantage over another country in both products. c. it would be difficult for Korea to benefit from trade with another country if Korea is efficient in the production of both goods. d. Korea's opportunity cost of shoes is the inverse of its opportunity cost of soccer balls.

+3

Answers (1)

Know the Answer?

Brittany Lewis · Answer 1

Option "D" is the correct answer to the following question.

Explanation:

If two countries produce two items separately or produce both goods simultaneously, then the opportunity cost of both those goods are opposite to each other.

In the given question, Korea is capable of producing shoes or football i. e the opportunity cost of shoes will be inverse of the opportunity cost of football or the opportunity cost of football will be inverse as the opportunity cost of the shoes because the country is capable of producing either item or can form a balanced mixture of both.