[2'1]I marks] Suppose the United States and Mexico are the only countries in the world, and labor is the only productive input. Suppose the technology of the two countries is characterised by the following input requirement table: Mexico United States TVs (X) US TV per hour | US TV per hour lComputers (Y) U4 computers per hour 1f3 computers per hour As an illustration, the information contained in the cell (Mexico, TV} signifies that for each hour dedicated to produce TVs, Mexican workers are able to produce one sixth {US} of a TV set. In other words, it takes 6 hours for Mexican workers to produce one TV set. The interpretation is the similar in all cells. a} Which country has absolute advantage in X? In Y? Explain. [2] 1)) Calculate the opportunity cost of production of each good for both countries. You need to define the concept of opportunity cost to explain your calculation c] Which country has comparative advantage in X? In Y? Explain. [2] d) Determine the pre- trade relative price of television, i.e. the price of a television (X) in units of computers (Y) in each country. Explain. [2] Suppose that each country has SID hours of labor availahle. Draw the PPF for each country and determine its slope. [B] If Mexico and the United States form a free trade area, in what range would the world price have to fall? Why? [4]