3. Suppose that Costa Rican worker Carlos can produce either 100 pounds of coffee or 1 computer per week, and a second worker, Maria, can produce either 150 pounds of coffee or 1 computer per week. Both Carlos and Maria work 50 weeks per year. (LO2)

a. Find the PPC for Costa Rica. Give numerical values for the graph’s intercepts and slopes. How much of each good is produced if each worker fully specializes according to comparative advantage?

b. World prices are such that 1 computer trades for 125 pounds of coffee on international markets. If Costa Rica is open to trade, show Costa Rica’s consumption possibilities graphically. What is the mostof each good that Costa Ricans can consume when the economy is open? Compare to the situation when the economy is closed.

c. Repeat part b under the assumption that 1 computer trades for 80 pounds of coffee on world markets.