Assume that Home and Foreign produce only two goods - computers and cars. Home has 720 units of labour available. In Home, the unit labour requirement in computers production is 8 and in car production it is 12. On the other hand, Foreign has 960 units of labour available. Foreign's unit labour requirement in computer production is 6, while in car production it is 24.

a.Calculate the opportunity cost of producing computers in terms of cars in both Home and Foreign.

b.In the absence of trade, what would the price of computers in terms of cars be in both countries? Why?