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