1. The economies of Canada and Mexico produce only fruit and timber. Each country has a labor force of 100. The followin

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1 The Economies Of Canada And Mexico Produce Only Fruit And Timber Each Country Has A Labor Force Of 100 The Followin 1 (22 KiB) Viewed 14 times

1. The economies of Canada and Mexico produce only fruit and timber. Each country has a labor force of 100. The following table gives the production per month for each labor in each country: Basket of fruit cubic feet of timber 20 10 20 60 a. Which country has absolute advantage in what commodity? b. Sketch the Production possibility curve for both countries (draw the PPC). c. Which country has comparative advantage in what production. If they specialize, what will be total production? Which country will produce what and what amount? Canada Mexico