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Country A and Country B are trading partners, and both cars and computers. The countries can produce the following amounts using equal amounts of resources.
Country A and Country B are trading partners, and both cars and computers. The countries can produce the following amounts using equal amounts of resources. Country A: 9 cars or 12 computers Country B: 9 cars or 18 computers (a) Which country has an absolute advantage in producing computers? (b) Calculate the opportunity cost of 21 cars in Country B. (0) Which country has the comparative advantage in producing cars? Explain. (d) If the terms of trade were that 3 cars are exchanged for 1 computer, should Country A produce computers domestically or import computers from Country B
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