Final answer:
The theory of comparative advantage suggests that India should sell automobiles to Russia at a price that is higher than 5 tons of steel per automobile, but none of the provided options correctly reflect this trade scenario.
Step-by-step explanation:
The theory of comparative advantage suggests that countries should specialize in producing goods for which they have the lowest opportunity cost and trade with others for goods that are relatively more expensive to produce. In the case of Russia and India, we need to calculate the opportunity cost for each country in terms of steel and automobiles. For Russia, the opportunity cost of producing one automobile is 5 tons of steel (25 tons / 5 automobiles). For India, the opportunity cost of producing one automobile is 6 tons of steel (18 tons / 3 automobiles). Since Russia's opportunity cost is lower, it has a comparative advantage in producing automobiles.
Trade should occur where both parties benefit, meaning India would benefit by trading steel for automobiles at a rate between their opportunity cost of 6 tons of steel and Russia's opportunity cost of 5 tons of steel for one automobile. With the options provided, none specifically state the trading price for chairs which seems to be a typo and should refer to automobiles. Given the options:
- India will sell automobiles as long as the price is higher than 5 tons of steel, since 5 tons is the opportunity cost for Russia and India wouldn't want to sell for less than their opportunity cost of 6 tons.
Hence, the answer to the question is none of the above, as the options do not correctly reflect the trade price based on the comparative advantage theory and they also mistaken references to chairs instead of automobiles.