Look at the attached graph (it may appear below) called The Production Possibilities for Two Countries. a. Who has the absolute advantage in the production of radios? b. Who has the absolute advantage in the production of tires? c. Who has the comparative advantage in the production of radios? What is their opportunity cost? d. Who has the comparative advantage in the production of tires? What is their opportunity cost?

Indonesia Malaysia Quantity Quantity of radios of radios 1,600 1,600 1,400 1,400 1,200 1.200 1.000 1.000 800 300 600 600 400 400 200 200 400 800 1,200 0 400 800 1.200 Quantity of tires Quantity of tires Indonesia Malaysia Quantity Quantity of radios of radios 1,600 1,600 1,400 1.400 1,200 1,200 1,000 1,000 800 800 600 600 400 400 200 200 0 400 800 1,200 0 400 800 1,200 Quantity of tires Quantity of tires