EOC prob 20 points Help Sa You received partial credit in th

EOC prob (20 points) Help Sa You received partial credit in the previous attempt. Check my work View China Production Possibilities Product A Apparel 120, 000 96, 000 72,000 48, 000 24, 000 0 24 Chemicals(tons) 48 72 96 120 U.s. Production Possibilities ok ProductRS Apparel Chemicals (tons) 40,000 32,000 24,000 16,0000 8,000- ! | 16| 32| 48| 64|80 nt 0 | ences

Solution

China has a Comparative Advantage in Apparels and US has in Chemicals. Thus, China produces 1,20,000 units of apparels and US produces 80 units of chemical.

Opportunity cost of a ton of chemical is 1000 in China and 500 in US.

Thus, 500 units for 1 ton of chemicals and 1000 for 2 ton of chemicals.

China has a gain of 8000 apparels.