If the fictitious country of Islandia puts all of its production resources into fish, it can produce 60 units of fish. If it puts all of its production resources into coconuts, it can produce 45 units of coconuts. If the fictitious country of Mountania puts all of its production resources into fish, it can produce 30 units of fish. If it puts all of its production resources into coconuts, it can produce 20 units of coconuts. Assume that both countries have constant cost functions for both products. Instructions: Round your answers to 2 decimal places. a. What is the opportunity cost of producing 1 unit of fish in Islandia? 0.5 unit(s) of coconuts b. What is the opportunity cost of producing 1 unit of coconuts in Islandia? |unit(s) of fish c. What is the opportunity cost of producing 1 unit of fish in Mountania? 45 unit(s) of coconuts d. What is the opportunity cost of producing 1 unit of coconuts in Mountania? 15 unit(s) of fish e. Mountania ] has a comparative advantage in the production of fish. Islandia ]has a comparative advantage in the production of coconuts. f. What will be the terms of trade for fish? Between[ ]and ]unit(s) of coconuts g. What will be the terms of trade for coconuts? Between and |unit(s) of fish

If the fictitious country of Islandia puts all of its production resources into fish, it can produce 60 units of fish. If it puts all of its production resources into coconuts, it can produce 45 units of coconuts. If the fictitious country of Mountania puts all of its production resources into fish, it can produce 30 units of fish. If it puts all of its production resources into coconuts, it can produce 20 units of coconuts. Assume that both countries have constant cost functions for both products. Instructions: Round your answers to 2 decimal places. a. What is the opportunity cost of producing 1 unit of fish in Islandia? 0.5 unit(s) of coconuts b. What is the opportunity cost of producing 1 unit of coconuts in Islandia? |unit(s) of fish c. What is the opportunity cost of producing 1 unit of fish in Mountania? 45 unit(s) of coconuts d. What is the opportunity cost of producing 1 unit of coconuts in Mountania? 15 unit(s) of fish e. Mountania ] has a comparative advantage in the production of fish. Islandia ]has a comparative advantage in the production of coconuts. f. What will be the terms of trade for fish? Between[ ]and ]unit(s) of coconuts g. What will be the terms of trade for coconuts? Between and |unit(s) of fish

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter21: International Trade And Finance

Section: Chapter Questions

Problem 2SQ

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If the fictitious country of Islandia puts all of its production resources into fish, it can produce 60 units of fish. If it puts all of its production resources into coconuts, it can produce 45 units of coconuts. If the fictitious country of Mountania puts all of its production resources into fish, it can produce 30 units of fish. If it puts all of its production resources into coconuts, it can produce 20 units of coconuts. Assume that both countries have constant cost functions for both products.
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