And then does this mean cars are more expensive or less expensive? Suppose China and Japan...

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And then does this mean cars are more expensive or less expensive?

Suppose China and Japan produce only two goods, computers and cars. Assume that both countries have linear production possibility frontiers and that both countries have identical resources and technology available to produce these two goods. In one year, China can produce either 2000 computers and 50 cars. or 2800 computers and 0 cars, or any combination of computers and cars that lie on the line that includes these two points. Japan can produce cither 1000 computers and 75 cars, or 1600 computers and 0 cars, or any combination of computers and cars that lie on the line that includes these two points. Both countries are allowed to trade with each other.

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