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The United States and Canada trade wheat and lettuce. The United States can produce 50 tons of wheat an hour but with an opportunity cost
The United States and Canada trade wheat and lettuce. The United States can produce 50 tons of wheat an hour but with an opportunity cost of 250 tons of lettuce. Canada can produce 150 tons of wheat an hour but with an opportunity cost of 50 tons of lettuce. Answer the questions below. (20 points). a. What are the comparative-cost ratios of the two countries for wheat and lettuce? (5 points) b. What product should each country specialize? The answer needs to include comparative opportunity cost COMPARISONS for credit. (5 points). c. What is the "range" of acceptable terms of trade for 1 ton of wheat (answer should show between _ and _ tons of lettuce)? (5 points) d. What is the "range" of acceptable terms of trade for 1 ton of lettuce (answer should show between _ and _ tons of wheat)? (5 points)
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