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The graphs below show the production possibilities frontiers for grapes and lemons in Spain and Argentina, with their current level of production marked as points
The graphs below show the production possibilities frontiers for grapes and lemons in Spain and Argentina, with their current level of production marked as points A and B. Spain's Production Possibilities Grapes (millions of tons) A O 1.4 1.6 1.8 20 Lemons (millions of tons)Argentina's Production Possibilities 6.0 5.6 4.8 4.4 4.0 Grapes (millions of tons) NNNOW Lemons (millions of tons) Instructions: Round your answers to one decimal place. a. At the current level of production, combination A In Spain and combination B in Argentina, how many grapes and lemons are produced in total? million tons of grapes million tons of lemons b. Use the Information above to compute the opportunity cost of producing 1 million tons of grapes in each country. For Spain, the opportunity cost of producing 1 million tons of grapes is million tons of lemons. For Argentina, the opportunity cost of producing 1 million tons of grapes is million tons of lemons.c. Use the Information above to compute the opportunity cost of producing 1 million tons of lemons in each country. For Spain, the opportunity cost of producing 1 million tons of lemons is million tons of grapes. For Argentina, the opportunity cost of producing 1 million tons of lemons Is million tons of grapes. d. With mutually beneficial trade, [Click to select) v will export grapes at a price higher than million tons of lemons but lower than million tons of lemons. e. With mutually beneficial trade, (Click to select) v will export lemons at a price higher than million tons of grapes but lower than million tons of grapes. f. As a result of international trade, the combined production of grapes and lemons between the two nations should Include (Click to select) v
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