Consider two countries, Mexico and the United States, each capable of producing peanuts and corns. Assume that for a given amount of inputs, the production possibilities for these two countries are as shown in table.

Mexico	United States
Peanut (in tonnes)	Corn (in tonnes)	Peanut (in tonnes)	Corn (in tonnes)
0 5 10 15 20	40 30 20 10 0	0 10 20 30 40	40 30 20 10 0

1. Calculate the opportunity cost of producing peanut for each country?
2. Calculate the opportunity cost of producing corn for each country?
3. Which country has a comparative advantage in producing peanut? Which country has a comparative advantage in producing corn? Briefly explain.
4. Suppose the terms of trade for each tonne of corn is 0.75 ton of peanut. If each country specialises in the good for which it has comparative advantage, and they exchange 24 tonnes of corn for some tonnes of peanut, compute the consumption bundles of corn and peanut (in tonnes) for each country.