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          USA    Argentina

Beef     100       20

Wheat   200      80

 

a) Does either country have an absolute advantage in the production of wheat or beef? Explain.

b) What is the opportunity cost of wheat in each country?

c) What is the opportunity cost of beef in each country?

d) Analyze comparative advantage and opportunities for trade between the U.S. and Argentina. 

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Assume that Andia and Zardia can switch between producing wheat and producing beef at a constant rate. Minutes Needed to Make 1 Bushel of Pound of Wheat Beef whats lobbB Andia 20 12 Zardia 15 10 - What Els B 8. Refer to Table 2. Assume that Andia and Zardia each has 60 minutes available. If each person spends all his time producing the good in which he has a comparative advantage, then total production is a. 3 bushels of wheat and 6 pounds of beef. b. 3.5 bushels of wheat and 5.5 pounds of beef. C. 4 bushels of wheat and 5 pounds of beef. d. 7 bushels of wheat and 11 pounds of beef.

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