Math Problem Statement
The following table shows the amount of resources (in man-hours) required to produce good A or good B in Oceanland and Funland, respectively. A
B
Oceanland
X
12
Funland
6
18
If Oceanland has a comparative advantage in producing A, then, the maximum value of X should be strictly smaller than [Answer].
(In decimal numbers, with two decimal places, please.)
Solution
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Math Problem Analysis
Mathematical Concepts
Comparative Advantage
Opportunity Cost
Inequality
Formulas
Opportunity cost of A in Oceanland = 12 / X
Opportunity cost of A in Funland = 18 / 6 = 3
Inequality: 12 / X < 3
Theorems
Law of Comparative Advantage
Suitable Grade Level
Grades 9-12
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