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25 The accompanying table describes the hypothotical PPC (product possibility curves) for furniture and machinery in Carada and Mexico (both in millions of tonnes per
25
The accompanying table describes the hypothotical PPC (product possibility curves) for furniture and machinery in Carada and Mexico (both in millions of tonnes per year). Belore trade, Canada producoss at point C and Mexico at point D. After trade, 17 million tonnes of machinery is traded for 255 million tonnes of furniture. a. The opportunity oobt of machinery in Canada is tonne(s) of furniture per tonne of machinery. (Simplify your answer.) b. The opportunily cost of machinery in Moxico is tonne(s) of furniture per tonne of machinery (Simplify your answer) c. The opportunity cost of furniture in Canada is tonne(s) of machinery por tonne of furniture. (Simplify your answer) d. The opportunity cost of furniture in Mexico is tonne(s) of machinery per tonne of furniture. (Simplify your answer.) e. has a comparative advarnage in producing machinecy since machinery, tonne of furniture. (Simplify your answer) d. The opportunity cost of furniture in Mexico is tonne(s) of machinory per tonne of furniture. (Simpify your answer.) e. has a comparative advantage in producing machinery sinc machinery. f. has a comparative advantage in producing furniture since furniture. 9. The gains from specialization and trade for Canada are milion tonne(s) of furniture per year and million tonne(s) of machinery per year. The gains from specialization and trade for Mexico are tonne(s) of fumiture per year and tonne(s) of machinery per year, (Simplify your answers.) h. If trade takes nlace between Canada and Mexico, then Mexican machinery producers Mexican furniture producers and Mexican consumers Step by Step Solution
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