The following table shows the production of meat and wheat produced in tonnes per day for Germany and Canada.

Meat Wheat

Germany 200 300

Canada 200 150

a.Which country has absolute advantage in producing wheat? Why?

b.What is the opportunity cost of producing one tonne of meat in Germany?

c.What is the opportunity cost of producing one tonne of wheat in Germany?

d.Which country has the comparative advantage in producing meat? Why?

e.Which country has the comparative advantage in producing wheat? Why?