Question
The following table shows the amount of good A and good B that two countries could produce if they devoted all of their resources to
The following table shows the amount of good A and good B that two countries could produce if they devoted all of their resources to that good. Assume both countries have the same amount of resources and the trade-off between good A and good B remains constant as resources are shifted from one good to another.
Canada
Good A - 200
Good B - 400
India
Good A - 300
Good B - 900
a.Which country has the absolute advantage in good A?In good B?
b.What is Canada's marginal opportunity cost of producing good A?good B?
c.What is India's marginal opportunity cost of producing good A?good B?
d.Which country has the comparative advantage in good A?In good B?
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