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1) Claremont and Pomona both produce oranges and pencils. An average worker in Claremont takes 30 minutes to produce one orange and 60 minutes to
1) Claremont and Pomona both produce oranges and pencils. An average worker in Claremont takes 30 minutes to produce one orange and 60 minutes to produce one pencil. An average worker in Pomona takes 45 minutes to produce one orange and 75 minutes to produce one pencil. a) Who has the absolute advantage in producing oranges? b) Make a table showing the opportunity cost of producing one orange and one pencil for each country. c) Which country (if any) has a comparative advantage in producing oranges? In producing pencils? d) If the two countries specialize in producing only one good each and trade with each other, who will import oranges
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