Assume 2 countries are producing 2 goods, bread and rice by only using labor. The home countrys unit labor requirements are 5 for bread and 2 for rice. The total amount of labor available in the home country are 10 units. The foreign countrys unit labor requirements are 0.5 for bread and 10 for rice. The total amount of labor available in the foreign country are 20 units

A Which country has an absolute in the production of bread and which in the production of rice?

B. Derive the budget constraints for the home and foreign country, and write them as a function of the quantity of bread.

C. Which country has a comparative advantage in bread production and which country in rice production?