Table 2-10 -Refer to Table 2-10.This Table Shows the Number of Labor

question 55

Essay

Table 2-10

-Refer to Table 2-10.This table shows the number of labor hours required to produce a wristwatch and a bushel of rice in Japan and Thailand.
a.Which country has an absolute advantage in the production of wristwatches?
b.Which country has an absolute advantage in the production of rice?
c.What is Japan's opportunity cost of producing one wristwatch?
d.What is Thailand's opportunity cost of producing one wristwatch?
e.What is Japan's opportunity cost of producing one bushel of rice?
f.What is Thailand's opportunity cost of producing one bushel of rice?
g.If each country specializes in the production of the product in which it has a comparative advantage,who should produce wristwatches?
h.If each country specializes in the production of the product in which it has a comparative advantage,who should produce rice?

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Definitions:

Data Processing

The conversion of raw data into meaningful information through a process that includes recording, interpretation, and organization of data.

Operating Departments

Sections within a business that are directly involved in its core operations or primary activities, contributing to the production of goods or services.

Process Costing

A pricing approach applied in production settings, where expenses are allocated to specific processes or departments, ideal for uniform products.

Ending Work

Refers to the final stages of a project or the remaining inventory in production at the end of an accounting period.