Japan can produce either 80 cars, or 16 planes. Korea can produce either 48 cars, or 16 planes. Japan's opportunity cost for 1 plane is 5 cars, Korea's opportunity cost for 1 plane is 3 cars.
Both countries would benefit from trade if 1 airplane was traded from Korea to Japan for between __ and __ cars?
Thanks for your help, it is very much appreciated.
Both countries would benefit from trade if 1 airplane was traded from Korea to Japan for between __ and __ cars?
Thanks for your help, it is very much appreciated.