If Korea is capable of producing either shoes or soccer balls or some combination of the two,then
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

Quizplus · Accepted Answer

If Korea has the option to produce either shoes or soccer balls, then it has a comparative advantage in one product over the other. The opportunity cost of shoes is the inverse of the opportunity cost of soccer balls. Therefore, Korea should focus on producing the product with a lower opportunity cost and trade with another country for the other product. This will enable both countries to benefit from trade.

If Korea Is Capable of Producing Either Shoes or Soccer