In one hour of labor input, South Korea can produce either 100 computer chips or 50 bed linens. In the U. S., in one hour of labor input, either 150 computer chips or 100 bed linens can be made. Select the correct response below.
1. The U. S. has a comparative advantage in computer chips manufacturing.
2. Both the U. S. and S. Korea have comparative advantages in computer chips manufacturing.
3. S. Korea has a comparative advantage in computer chips manufacturing.
4. S. Korea has an absolute advantage in bed linen production.
5. None of these are correct
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In one hour of labor input, South Korea can produce either 100 computer chips or 50 bed linens. In t...
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