uppose there exist two imaginary countries, Congaree and Yosemite. Their labor forces are each capable of supplying four million hours per day that can be used to produce pistachios, chinos, or some combination of the two. The following table shows the amount of pistachios or chinos that can be produced by one hour of labor.
Country
Pistachios
Chinos
(Pounds per hour of labor)
(Pairs per hour of labor)
Congaree 4 16
Yosemite 6 12
Suppose that initially Yosemite uses 1 million hours of labor per day to produce pistachios and 3 million hours per day to produce chinos, while Congaree uses 3 million hours of labor per day to produce pistachios and 1 million hours per day to produce chinos. As a result, Congaree produces 12 million pounds of pistachios and 16 million pairs of chinos, and Yosemite produces 6 million pounds of pistachios and 36 million pairs of chinos. Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two countries, each country consumes the amount of pistachios and chinos it produces.
Congaree's opportunity cost of producing 1 pound of pistachios is____ of chinos, and Yosemite's opportunity cost of producing 1 pound of pistachios is ____pairs of chinos. Therefore,______ has a comparative advantage in the production of pistachios, and _____ has a comparative advantage in the production of chinos.