Question

Lillian Fok is the president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the following resources:

Answer 1

Japan has the absolute advantage in the production of rubber and radios compared to Malaysia.

Step-by-step explanation:

Absolute advantage refers to a situation where a country can produce a good or service at a lower cost or with higher productivity compared to another country. In this case, Japan has the absolute advantage in the production of rubber because one worker in Japan can make 5 tons of rubber, while in Malaysia, one worker can only make 10 tons of rubber.

Similarly, Japan has the absolute advantage in the production of radios because one worker in Japan can make 80 radios, while in Malaysia, one worker can only make 40 radios.

The absolute advantage can be determined by comparing the productivity levels of workers in each country.