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Answers that are short and to the point (without being cryptic) will be appreciated. Maximum Time: 1 hour 1. Suppose that Indonesia and Cambodia both
Answers that are short and to the point (without being cryptic) will be appreciated. Maximum Time: 1 hour 1. Suppose that Indonesia and Cambodia both produce maple syrup and honey. The combinations of the two goods that each country can produce in one days is given in the table below: Indonesia Cambodia Honey (in tons Maple syrup (in tons) Honey (in tons) |Maple syrup in tons 0 60 O 50 10 45 10 40 20 30 20 30 30 15 30 20 40 O 40 10 50 (a) Who has a comparative advantage in producing maple syrup? Who has a comparative advantage in producing honey? (b) Suppose that Indonesia is currently producing 30 tons of honey and 15 tons of maple syrup and Cambodia is currently producing 10 tons of honey and 40 tons of maple syrup. Demonstrate that Indonesia and Cambodia can both be better off if they specialize in producing only one good and then engage in trade
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