Food	Clothing
East	10	20
West	5	15

1. Who has an absolute advantage in the food and clothing industry and why?.
2. Who has an comparative advantage in the food and clothing industry and why?.
3. What is the opportunity cost of producing one more unit of food for both the east and west? And why is there an opportunity cost?
4. Under free trade, where should East and West produce food and clothing, so as to maximize the production of food and clothing? Explain.