Question

the table compares two countries and two products.
what might be the best decision for country a?
country\tcost (units)\tproduction choices
\t\tpetroleum (units)\tseafood (units)
country a\t1\t16\t8
country b\t1\t8\t8
○ 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:

To determine the best decision for Country A, we analyze the production possibilities. Country A can produce 16 units of petroleum or 8 units of seafood with a cost of 1 unit, while Country B produces 8 units of petroleum or 8 units of seafood with the same cost. Country A has a comparative advantage in petroleum (16 > 8 for petroleum, while seafood is 8 = 8). So focusing on petroleum maximizes production efficiency.

Answer:

C. focus on the petroleum industry only