Table 3-7 Assume That Japan and Korea Can Switch Between Producing Cars

question 158

Multiple Choice

Table 3-7
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.

-Refer to Table 3-7.Korea has an absolute advantage in the production of

• A) cars and a comparative advantage in the production of cars.
• B) cars and a comparative advantage in the production of airplanes.
• C) neither good and a comparative advantage in the production of cars.
• D) neither good and a comparative advantage in the production of airplanes.

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Definitions:

Nash Equilibrium

An idea in game theory that suggests no participant can gain an advantage by altering their approach if all other participants maintain their strategies.

Payoff Matrix

A tabular representation of the payoffs or outcomes in a strategic game for each set of strategies chosen by the players.

Nash Equilibrium

A concept in game theory where each player's strategy is optimal, given the other players' strategies, resulting in no incentive for any player to deviate from their chosen strategy.

International Strategy

An approach businesses use to expand their operations and market presence across national borders.