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Please answer C and D completely With explanations FRQA) output Question Hats Bicycles imports - come in 1, 200 12B Izh 360 = 0.25 300

Please answer C and D completely With explanations

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FRQA) output Question Hats Bicycles imports - come in 1, 200 12B Izh 360 = 0.25 300 = 4 exports - 1,200 NUMBER OF HATS Rayland 600 exit 300 Artland 60O = O.S 300 = 2 1,200 1 =h S Rayland 500 Artland 5 hats - 1 bicycle 300 NUMBER OF BICYCLES The diagram above shows the production possibilities curves for two countries: Artland and Rayland. Using equal amounts of resources, Artland can produce 600 hats or 300 bicycles, whereas Rayland can produce 1,200 hats or 300 bicycles. at Calculate the opportunity cost of a bicycle in Artland. - 2 bring in Of If the two countries specialize and trade, which country will import bicycles? Explain. (c) If the terms of trade are 5 hats for 1 bicycle, would trade be advantageous for each of the following? (i) Artland (ii) Rayland (d) If productivity in Artland triples, which country has the comparative advantage in the production of hats? a . The opportunity cost of a bicycle in artland IS 2. b. The contury that will import bicycles would be Rayland because they produce More bicycles ( 4 ) then artland (2 ) . C

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