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Consider two countries, Home and Foreign, which are closed to international trade. Home has 1,720 units of labor available, and Foreign has 1,770 units. Both
Consider two countries, Home and Foreign, which are closed to international trade. Home has 1,720 units of labor available, and Foreign has 1,770 units. Both countries can produce two goods, good 1 and good 2. Home's unit labor requirement in good 1 production is 2, while in good 2 production is 6. Foreign's unit labor requirement in good 1 production is 6, while in good 2 production it is 1. Compute the opportunity cost of good 1 and good 2 both at Home and Foreign. Enter Foreign's opportunity cost of good 2 (with two decimal digits)
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