Question

the table compares two countries and two products.
what might be the best decision for country a?

country	cost (units)	production choices
country a	1	16	8
country b	1	8	8

• focus both on its petroleum and seafood industries
• focus on the seafood industry only
• focus on the petroleum industry only
• decide to find another industry to focus on

Explanation:

Step1: Analyze Production Efficiency

For Country A, with a cost of 1 unit, it produces 16 units of petroleum or 8 units of seafood. For Country B, with the same cost (1 unit), it produces 8 units of petroleum or 8 units of seafood.

Step2: Compare Comparative Advantage

Country A's petroleum production (16 units) is higher than Country B's (8 units) for the same cost, while seafood production (8 units) is equal to Country B's. So Country A has a comparative advantage in petroleum.

Step3: Evaluate Options

• Focusing on both: Not optimal as petroleum is more efficient.
• Seafood only: Country B is same, no advantage.
• Petroleum only: Leverages its higher production efficiency.
• Find another industry: Unnecessary as petroleum is already efficient.

Answer:

C. focus on the petroleum industry only