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The accompanying table describes the hypothetical Canada A B C D E F Question list K PPC (product possibility curves) for furniture and Machinery 0
The accompanying table describes the hypothetical Canada A B C D E F Question list K PPC (product possibility curves) for furniture and Machinery 0 225 450 675 900 1,125 machinery in Canada and Mexico (both in millions of tonnes per year). Before trade, Canada produces at point Furniture 45 36 27 18 9 0 C and Mexico at point D. After trade, 31 million tonnes of Mexico A B C D E F O Question 1 machinery is traded for 186 million tonnes of furniture. Machinery 0 8 16 24 32 40 Furniture 400 320 240 160 80 0 a. The opportunity cost of machinery in Canada is Question 2 tonne(s) of furniture per tonne of machinery. (Simplify your answer.) b. The opportunity cost of machinery in Mexico is O Question 3 tonne(s) of furniture per tonne of machinery. (Simplify your answer.) c. The opportunity cost of furniture in Canada is Question 4 tonne(s) of machinery per tonne of furniture. (Simplify your answer.) d. The opportunity cost of furniture in Mexico is Question 5 tonne(s) of machinery per tonne of furniture. (Simplify your answer.) e. has a comparative advantage in Question 6 producing machinery since machinery. O Question 7 has a comparative advantage inCanada A B C D E F K d. The opportunity cost of furniture in Mexico is Machinery 0 225 450 675 900 1,125 tonne(s) of machinery per tonne of furniture. Furniture 45 36 27 18 9 0 (Simplify your answer.) Mexico A B C D E F e, has a comparative advantage in Machinery 0 8 16 24 32 40 producing machinery since Furniture 400 320 240 160 80 0 machinery. f. has a comparative advantage in producing furniture since furniture. g. The gains from specialization and trade for Canada are million tonne(s) of furniture per year and million tonne(s) of machinery per year. The gains from specialization and trade for Mexico are tonne(s) of furniture per year and tonne(s) of machinery per year. (Simplify your answers.) h. If trade takes place between Canada and Mexico, then Mexican machinery producers Mexican furniture producers and Mexican consumers
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