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Country X has 100 units of labor.In country X it takes 10 units of labor to produce an airplane and 5 units of labor to
Country X has 100 units of labor.In country X it takes 10 units of labor to produce an airplane and 5 units of labor to produce a unit (whatever it is....) of coffee beans.Country Y has 200 units of labor.In country Y it takes 10 units of labor to produce an airplane and it takes 2 units of labor to produce a unit of coffee.Who has a comparative advantage in airplanes?Draw the PPF for these two countries combined.Label the slopes and intercepts.
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