Answered: USA Wheat Lumber =0, Wheat = 900 Lumber…

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Economics

USA Wheat Lumber =0, Wheat = 900 Lumber Guyana Lumber = 0, Wheat = 1000 Lumber 300, Wheat = 0 Lumber =200, Wheat = 0

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Hello please provide homeowrk help with the following usung the image provided. Thank you.

1. What is the opportunity cost of one more unit of Lumber in Country B and who has the comparative advantage in Wheat production?

2. What country has the comparative advantage in Lumber production?

3. What is the acceptable term of trade for which both countries will gain from trade?

USA
Wheat
Lumber =0, Wheat = 900
Lumber
Guyana
Lumber = 0, Wheat = 1000
Lumber 300, Wheat = 0
Lumber =200, Wheat = 0

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