Q6. Country 'A' is able to secure its 'First Mover Advantage'in world competition even ifCountry 'B'has lower cost of production and, thus its selling price. Explain this with graph and reasoning.

Q7. Who expounded the linear growth theory? Was it based on model, assumptions, or certain history? How do you justify a hint of Ricardo's modelin this theory?

How do you establish the Production Possibility Frontier (PPF) of this numerical example? Plot the graph. Derive comparative advantage mathematically between Ghana and South Korea in a tabular form through this numerical example mentioned below and explain the trade implications.

Numerical Example

Assume 200 units of resources available in two countries-Ghana and South Korea. Ghana takes 10 resources to produce 1 ton of cocoa and13.33 resources to produce 1 ton of rice. South Korea takes 40 resources to produce 1 ton of cocoa and 20 resources to produce 1 ton of rice.