Answer :
Let's solve this step-by-step based on the information provided.
1. Identify the production rates:
[tex]\[ \begin{array}{|c|c|c|} \hline & \text{Cherries} & \text{Apples} \\ \hline \text{Chile} & 80 & 40 \\ \hline \text{Argentina} & 60 & 20 \\ \hline \end{array} \][/tex]
2. Calculate the opportunity cost of producing 1 cherry in each country:
- Chile:
- If Chile produces 80 cherries per day and 40 apples per day, the opportunity cost of producing 1 cherry is the number of apples they forgo.
- Opportunity cost of 1 cherry = Apples / Cherries = \( \frac{40}{80} = 0.5 \) apple
- Argentina:
- If Argentina produces 60 cherries per day and 20 apples per day, the opportunity cost of producing 1 cherry is the number of apples they forgo.
- Opportunity cost of 1 cherry = Apples / Cherries = \( \frac{20}{60} \approx 0.33 \) apple
3. Comparative advantage:
- Comparative advantage is held by the country with the lower opportunity cost in producing a good.
- Comparing the opportunity cost:
- Chile: 0.5 apple per cherry
- Argentina: 0.33 apple per cherry
- Argentina has the lower opportunity cost (0.33 vs. 0.5).
So, the opportunity cost of producing 1 cherry is \(0.5\) apple in Chile and \(0.33\) apple in Argentina. Argentina has a comparative advantage in cherry production.
Thus, the correct fill-ins for the blanks in the given question are:
\begin{itemize}
\item The opportunity cost of producing 1 cherry is \(0.5\) apple in Chile and \(0.33\) apple in Argentina.
\item Argentina has a comparative advantage in cherry production.
\end{itemize}
Therefore, the correct choice is:
[tex]\[ \boxed{0.5 \text{ apple}; 0.33 \text{ apple}; Argentina} \][/tex]
1. Identify the production rates:
[tex]\[ \begin{array}{|c|c|c|} \hline & \text{Cherries} & \text{Apples} \\ \hline \text{Chile} & 80 & 40 \\ \hline \text{Argentina} & 60 & 20 \\ \hline \end{array} \][/tex]
2. Calculate the opportunity cost of producing 1 cherry in each country:
- Chile:
- If Chile produces 80 cherries per day and 40 apples per day, the opportunity cost of producing 1 cherry is the number of apples they forgo.
- Opportunity cost of 1 cherry = Apples / Cherries = \( \frac{40}{80} = 0.5 \) apple
- Argentina:
- If Argentina produces 60 cherries per day and 20 apples per day, the opportunity cost of producing 1 cherry is the number of apples they forgo.
- Opportunity cost of 1 cherry = Apples / Cherries = \( \frac{20}{60} \approx 0.33 \) apple
3. Comparative advantage:
- Comparative advantage is held by the country with the lower opportunity cost in producing a good.
- Comparing the opportunity cost:
- Chile: 0.5 apple per cherry
- Argentina: 0.33 apple per cherry
- Argentina has the lower opportunity cost (0.33 vs. 0.5).
So, the opportunity cost of producing 1 cherry is \(0.5\) apple in Chile and \(0.33\) apple in Argentina. Argentina has a comparative advantage in cherry production.
Thus, the correct fill-ins for the blanks in the given question are:
\begin{itemize}
\item The opportunity cost of producing 1 cherry is \(0.5\) apple in Chile and \(0.33\) apple in Argentina.
\item Argentina has a comparative advantage in cherry production.
\end{itemize}
Therefore, the correct choice is:
[tex]\[ \boxed{0.5 \text{ apple}; 0.33 \text{ apple}; Argentina} \][/tex]
