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Mexico and Japan both produce wheat and automobiles. The production costs per unit of output as follows: The production costs per unit Wheat per Air
Mexico and Japan both produce wheat and automobiles. The production costs per unit of output as follows: The production costs per unit Wheat per Air Conditioner of output Metric ton per unit Mexico [in peso) 4000 peso 1000 peso Japan (in yen) 20000 yen 4000 yen What is the opportunity cost of producing one air conditioner in Mexico and Japan? What is the opportunity cost of producing a metric ton of wheat in Mexico and Japan? What are the limits to mutually beneficial trade? Draw the graph and shade the area. What are limits to sustainable exchange rate
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