Suppose that we are considering the trade between Peru and Ecuador. Suppose that each produce onlv two goods, and that thev each have $120,000 of resources to spend on the production of these goods. Ecuador: II Ecuador can produce one unit of oil at a cost of $4 per unit. I Ecuador can produce one unit of beef at a cost of $16 per unit. Peru: In Peru can produce one unit of oil at a cost of $10 per unit. I Peru can produce one unit of beef at a cost of $20 per unit. 12. Which country has the comparative advantage in producing oil? Which has the comparative advantage in producing beef? Show your work. 13. Draw the Production Possibilities Frontier {PPF} for Peru under autarkv. Draw this PPF with oil on the xaxis and beef on the vaxis. Label both the xintercept and vintercept. Suppose now that Peru and Ecuador start trading with each other at a rate of 3 units of oil for 1 unit of beef. 14. Draw the Production Possibilities Frontier {PPF} for Peru under this trade agreement. Again, draw this PPF with oil on the xaxis and beef on the v-axis. Label both the art-intercept and v- intercept