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4. Suppose two countries, Heaven and Paradise, are both capable of producing only two commodities: pail and brooms. Their production possibilities are shown below. Heaven
4. Suppose two countries, Heaven and Paradise, are both capable of producing only two commodities: pail and brooms. Their production possibilities are shown below.
Heaven | Paradise |
Quantity of Pails | Quantity of rooms | Quantity of Pails | Quantity of rooms |
40 | 0 | 100 | 0 |
30 | 20 | 80 | 60 |
20 | 40 | 60 | 120 |
10 | 60 | 40 | 180 |
0 | 80 | 20 | 240 |
0 | 300 |
a. What is/are the comparative advantage/s of Heaven and Paradise? (Explain briefly your answers). b. What country will specialize the production of pails? How about the production of brooms? (Explain briefly your answers).
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