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Table 3 shows the maximum amount of potatoes and wheat that can be produced by two countries, Agro and Herba, using the same quantity

 

Table 3 shows the maximum amount of potatoes and wheat that can be produced by two countries, Agro and Herba, using the same quantity and quality of inputs if all inputs are used to produce one product only. For instance, Agro could produce 8 tons of potatoes and 0 tons of wheat, or it could produce 4 tons of wheat and 0 kilograms of potatoes. Table 3 Agro Herba Potatoes (tons) Wheat (tons) 8 4 6 2 (a) Which country has an absolute advantage in producing potatoes? Provide a reason for your answer. (b) Which country has an absolute advantage in producing wheat? Provide a reason for your answer. (c) Calculate the opportunity costs: Agro: 1 ton potatoes = 1 ton wheat = "

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