The following graph shows the production possibility frontier of country A. Please calculate country As opportunity cost of producing automobiles.

A. 800 B. 400 C. 2 D. -2 E. 0.5 F. -0.5

(3) Suppose Argentina and Brazil each has 10,000 hours/month labor supply. In Argentina, it takes 2 hours to produce one pound of coffee and 4 hours to produce 1 bottle of wine, whereas in Brazil, it takes 1 hour and 5 hours to produce each kind of commodity. (a)Which country has the absolute advantage in producing coffee? A. Argentina B. Brazil

(b) Which country has the comparative advantage in producing wine?

A. Argentina B. Brazil