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ch. 7.docx G The following tables describe the hypothetical. BACK TO MYNAIT Quiz na estion 10 The following tables describe the hypothetical PPC (product possibility
ch. 7.docx G The following tables describe the hypothetical. BACK TO MYNAIT Quiz na estion 10 The following tables describe the hypothetical PPC (product possibility curves) for Canada and Brazil for chemicals and 1 it yet swered soyabeans (both in millions of tonnes). Before trade Canada arked out of produce at point C and Brazil at point B. 10 ).00 Flag Brazil A B C D E F Finish at Jestion Chemicals 200 160 120 80 40 0 Time left Soyabeans 0 100 200 300 400 500 Canada A B C D E F Chemicals 1000 800 600 400 200 0 Soyabeans 0 100 200 300 400 500 In Canada the opportunity cost of 1 unit of chemicals is 0.5 4 soyabean. In Brazil the opportunity cost of 1 unit of soyabeans is 2.5 4 chemicals. Canada has a comparative advantage in and therefore should import Assume each country specializes in their area of comparative advantage. APR 1 atv
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