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The accompanying table describes the hypothetical Canada A B C D E F PPC (product possibility curves) for furniture and Machinery 0 112 224 336
The accompanying table describes the hypothetical Canada A B C D E F PPC (product possibility curves) for furniture and Machinery 0 112 224 336 448 560 machinery in Canada and Mexico (both in millions of tonnes per year). Before trade, Canada produces at point Furniture 35 28 21 14 7 0 C and Mexico at point D. After trade, 13 million tonnes of Mexico A B C D E F machinery is traded for 78 million tonnes of furniture. Machinery 0 3 6 9 12 15 Furniture 150 120 90 60 30 0 a. The opportunity cost of machinery in Canada is tonne(s) of furniture per tonne of machinery. (Simplify your answer.) b. The opportunity cost of machinery in Mexico is tonne(s) of furniture per tonne of machinery. (Simplify your answer.) c. The opportunity cost of furniture in Canada is tonne(s) of machinery per tonne of furniture. (Simplify your answer.) d. The opportunity cost of furniture in Mexico is tonne(s) of machinery per tonne of furniture. (Simplify your answer.) e has a comparative advantage in producing machinery since machinery. has a comparative advantage inCanada A B C D E F d. The opportunity cost of furniture in Mexico is Machinery 0 112 224 336 448 560 tonne(s) of machinery per tonne of furniture. Furniture 35 28 21 14 7 0 (Simplify your answer.) Mexico A B C D E F e has a comparative advantage in Machinery 0 3 6 9 12 15 150 90 60 0 producing machinery since Furniture 120 30 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 Canadian machinery producers Canadian furniture producers and Canadian consumers
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