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Output Assumption: Either Oranges or Apples Oranges Apples Lebanon 40 80 Egypt 90 50 According to the above table, the capacity with all available resources
Output Assumption: Either Oranges or Apples Oranges Apples Lebanon 40 80 Egypt 90 50 According to the above table, the capacity with all available resources (working hours/ month) in Lebanon is enough to produce 40 thousand tons of oranges or 80 thousand tons of apples. On the other hand, the capacity with all available resources (working hours/ month) in Egypt is enough to produce 90 thousand tons of oranges or 40 thousand tons of apples. Answer the following: 1. 2. 3. Which country has the absolute advantage in oranges production and which has the absolute advantage in apples? Calculate the opportunity cost (OP) for the two countries in producing both Products? Based on your OP calculations, which country has the comparative advantage in producing each product? Do you see any opportunity of specialization and trade between the to countries? If any, who specializes in producing what
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