The table below shows the maximum output of beer and robots in two countries: Australia and Japan. For example, Australia may produce 30 beer and 0 robots, 5 robots and 0 beer, or some combination of the two goods. Assume constant opportunity costs and that both countries have the same resources.

Country Maximum output per week

Beer Robots

Australia 30 5

Japan 40 20

(a)Which country has the absolute advantage in making beer? Briefly explain.

[2 marks]

(b)Which country has the comparative advantage in producing robots? Briefly Explain.

[2 marks]

(c)Explain how the two countries can benefit from specialization and trade.In your answer, explain how many units of beer need to be traded per 1 robot in order to benefit both countries.