22. The graph depicts two trading partners, Home and Carthage. Each country]r can produce both wine and grain using the same amount of resources. a. Which countryF has absolute advantage in wine? b. 'Which country has absolute advantage in wheat? WINE c. What is the opportunity cost for Rome's production of one unit of wine? 500 Home d. Which countryF has a comparative advantage in wheat? Explain. e. If these countries trade, which counu'}r will import wheat? Explain. 201E! rthage f. If a new technologyF is invented that doubles the production of wheat for both countries, which country will import wheat? Explain. |