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1. The table on the left shows production possibilities for coffee and computers for the USA and Mexico. The values in the table express what

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1. The table on the left shows production possibilities for coffee and computers for the USA and Mexico. The values in the table express what each country would be able to produce if they specialized in that good and produced none of the other good. For example, the USA could produce 20 units of coffee and 0 computers, or they could produce 40 computers and 0 units of coffee. A. Use the production possibility information to fill in the opportunity cost table. Graph the two production possibilities frontiers. Coffee on vertical axis, Computers on horizontal axis. C. Determine which country should specialize in which good D. Assume that each country specialized in the way you described in (C), and then traded 10 units of coffee for 10 computers. On the graph, label two points for each country: pre- and post-trade. Why is it significant that the post-trade points are above the countries' PPFs? Opportunity cost of Coffee Opportunity cost of Coffee Computers (4Computers/A Coffee) Computers (4Coffee/A Computers) USA 20 50 USA Mexico 40 20 Mexico

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