a) Which country has an absolute advantage in bananas? In wheat? b) What is the relative price of bananas in Costa Rica if it does not trade? In Argentina? c) What is opportunity cost of wheat in Costa Rica? In Argentina? d) Which country has a comparative advantage in bananas? In wheat? Explain your answer. e) What are the upper and lower bounds for the trade price of wheat?
a) Which country has an absolute advantage in bananas? In wheat? b) What is the relative price of bananas in Costa Rica if it does not trade? In Argentina? c) What is opportunity cost of wheat in Costa Rica? In Argentina? d) Which country has a comparative advantage in bananas? In wheat? Explain your answer. e) What are the upper and lower bounds for the trade price of wheat?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
a) Which country has an
b) What is the relative
c) What is
d) Which country has a
e) What are the upper and lower bounds for the trade price of wheat?

Transcribed Image Text:Output per Hour Worked
Wheat
Costa Rica
Bananas 5 tons
1 ton
Argentina
3 tons
3 tons
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