1. Consider the example where there are two countries, A and B, who can each produce only sugar and salt. The production possibilities of Country A are such that if they concentrated 100% of their resources into the production of sugar, they could produce 120 lbs of sugar and if 100% in salt then 150 lbs of salt. For Country B, if they concentrated 100% in sugar then 120 lbs of sugar and if in salt then 100 lbs of salt. Assume the production possibilities curve is linear.

1. 2.5pt - What is opportunity cost for 1 lb of salt for the country with comparative in producing salt?

2. 2.5pt - What is opportunity cost for 1 lb of sugar for the country with comparative in producing sugar?