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The data below shows the total production ( in millions ) of the only two goods produced in Australia and Mexico. Calculate an answer for
The data below shows the total production in millions of the only two goods produced in Australia and Mexico.
Calculate an answer for each of the following questions.
Note: Round your answers to two decimal places.
a What is the opportunity cost of each product in Australia?
Beers : PuzzlesPuzzles : Beers
b What is the opportunity cost of each product in Mexico?
Beers : PuzzlesPuzzles : Beers
c In which country is each product cheaper?
select oneselect one
d If before trade, each country was devoting half its resources to producing each product, what is the total amount that they were producing?
Beers : in millionsPuzzles : in millions
e If the two countries were to specialize in producing the product they do best, what would be the total amount they could produce?
Beers : in millionsPuzzles : in millions
f What are the total gains as a result of specialization?
Beers : in millionsPuzzles : in millions
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