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Canada and Mexico produce cars and corn. The table below shows the maximum they can produce of each good in a day Maximum daily production
Canada and Mexico produce cars and corn. The table below shows the maximum they can produce of each good in a day Maximum daily production Cars 12 2 Corn (tons) 6 4 a. Does any of the two countries have an absolute advantage in the production of cars? Explain why. b. Which country has the comparative advantage in the production of corn? Explain why. c. If the two countries found terms of trade that make both of the better off, what good would Canada sell to Mexico? Why
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