Answered

Select the correct answer.

Which country has a comparative advantage for producing cups?

\begin{tabular}{|c|c|c|}
\hline & \begin{tabular}{l}
Units of Cups Produced per Hour \\
per Worker
\end{tabular} & \begin{tabular}{l}
Units of Plates Produced per Hour \\
per Worker
\end{tabular} \\
\hline India & 15 & 10 \\
\hline France & 8 & 9 \\
\hline Japan & 7 & 7 \\
\hline Canada & 6 & 9 \\
\hline
\end{tabular}

A. Canada

B. France

C. India

D. Japan



Answer :

To determine which country has a comparative advantage in producing cups, we need to calculate the opportunity cost of producing 1 unit of cups for each country. The country with the lowest opportunity cost has the comparative advantage.

The opportunity cost for each country can be calculated using the formula:
[tex]\[ \text{Opportunity Cost} = \frac{\text{Units of Plates Produced per Hour}}{\text{Units of Cups Produced per Hour}} \][/tex]

Let's calculate the opportunity cost for each country:

1. India:
[tex]\[ \text{Opportunity Cost}_{\text{India}} = \frac{10 \text{ plates}}{15 \text{ cups}} = \frac{2}{3} \approx 0.67 \][/tex]

2. France:
[tex]\[ \text{Opportunity Cost}_{\text{France}} = \frac{9 \text{ plates}}{8 \text{ cups}} = 1.125 \][/tex]

3. Japan:
[tex]\[ \text{Opportunity Cost}_{\text{Japan}} = \frac{7 \text{ plates}}{7 \text{ cups}} = 1 \][/tex]

4. Canada:
[tex]\[ \text{Opportunity Cost}_{\text{Canada}} = \frac{9 \text{ plates}}{6 \text{ cups}} = 1.5 \][/tex]

Now we compare the opportunity costs:

- India's opportunity cost is [tex]\( 0.67 \)[/tex]
- France's opportunity cost is [tex]\( 1.125 \)[/tex]
- Japan's opportunity cost is [tex]\( 1 \)[/tex]
- Canada's opportunity cost is [tex]\( 1.5 \)[/tex]

The country with the lowest opportunity cost for producing cups is India, with an opportunity cost of [tex]\( 0.67 \)[/tex].

Therefore, the correct answer is:
[tex]\[ \boxed{\text{C. India}} \][/tex]