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1. The following table shows the production of wheat and corn in Brazil and Mexico. Assume that both countries have one million acres of arable
1. The following table shows the production of wheat and corn in Brazil and Mexico. Assume that both countries have one million acres of arable land. (a) Which country has absolute advantage in wheat? In corn? Explain (b) Which country has comparative advantage in wheat? In corn? Explain (c) Explain why one country can have absolute advantage in both goods but cannot have a comparative advantage in both goods. Wheat Corn Brazil 90 bushels per acre 30 bushels per acre Mexico 50 bushels per acre 20 bushels per acre
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