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Assume that the US has 4,000 labor hours and Canada has 3,000. Furthermore, assume that in autarky each country chooses to produce 10 units of
Assume that the US has 4,000 labor hours and Canada has 3,000. Furthermore, assume that in autarky each country chooses to produce 10 units of clothing. a. Draw the PPF for each country, assuming constant opportunity costs. Label the pre-trade production points in each country as USP and C12. What is the amount of food being produced in each country? b. Assume that each country specializes in the good in which it has a comparative advantage. Indicate the post-trade production points as UST and CT
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