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Interpreting Comparative Advantage

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Britain's Production Possibilities

Product A B C D E F
Chemical 75 60 45 30 15 0
Steel 0 5 10 15 20 25

China's Production Possibilities

Product A B C D E F
Chemical 250 200 150 100 50 0
Steel 0 10 20 30 40 50

Refer to the table above. Which of the following is true?

A

In Britain, 50 units of Steel costs 10 units of Chemical.

B

In China, the cost of 50 units of chemical is 10 units of Steel.

C

In China, 50 units of Steel costs 10 units of Chemical.

D

In Britain, 10 units of Steel cost 5 units of Chemical.

E

In China, 5 units of steel costs 10 units of chemical.