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Question 3. Based on the outputs table below, answer the following questions. (9 Points) Coffee Apple Juice Canada U 10 Brazil 10 a) Draw PPF/PPC
Question 3. Based on the outputs table below, answer the following questions. (9 Points) Coffee Apple Juice Canada U 10 Brazil 10 a) Draw PPF/PPC curve separately for both countries. (Fully Labelled on axis) [2] b) Which, if either, country has an absolute advantage in producing coffee? Apple Juice? [2] c) Which, if either, country has a comparative advantage in producing coffee? Apple Juice? Explain using OC. [2] d) What are the acceptable terms of trade for both countries? Both!(don't forget about the UNITS) [3]Part B - Bowen needs help with his hammer market!
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