This is a lot but this work is so confusing. Thank you!
1
(2) [Gains from trade: 80 pts] Mexico and the United States can each produce tomatoes and corn. They each face a tradeoff between these two kinds of goods because each has limited land and other resources. Their production possibility (PP) curves are shown below. 8 Mexico V United States Tomatoes OHNWA UO 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Corna. If Mexico produced only tomatoes, how much could it produce? units of tomatoes b. If Mexico produced only corn, how much could it produce? units of corn c. Ifthe United States produced only tomatoes, how much could it produce? units of tomatoes (1. If the United States produced only corn, how much could it produce? units of corn e. Suppose Mexico produces one unit of corn. What is the maximum amount of units of tomatoes it can produce while doing so? tomatoes f. Suppose the United States produces twelve units of corn. What is the maximum units of amount of tomatoes it can produce while doing so? tomatoes g. PLOT THE POINTS that represent your answers to parts (e) and (f) on the graph on the previous page. Label them \"PRODUCTION BEFORE TRADE.\" [I-Iint: Each point must be an the country's production- possibilities curve] h. What is Mexico's opportunity cost of a unit of corn? That is, if Mexico were already units of producing somewhere on its PP curve, and decided to increase production of corn by tomatoes one unit, how many units of tomatoes would it have to give up producing? i. What is the United States' opportunity cost of a unit of corn? units of tomatoes j. What is Mexico's opportunity cost of a unit of tomatoes? That is, if Mexico were units of already producing somewhere on its PP curve, and decided to increase production of corn tomatoes by one unit, how many units of corn would it have to give up producing? k. What is the United States' opportunity cost of a unit of tomatoes? units of corn 1. Which country has a comparative advantage in producing corn? m. Which country has a comparative advantage in producing tomatoes? n. Is it possible for Mexico and the United States to trade corn and tomatoes so that both countries can consume combinations of tomatoes and corn outside their respective production-possibilities curves? Answer \"YES" or \"NO.\" 0. [10 s If ou answered \"NO,\" ex lain wh not in the ace below. If you answered \"YES,\" give an example below of a trade that would put both countries outside their respective production-possibilities curves. 0 Mexico shins units of to the United States, which ships units of in return. 0 Then PLOT YOUR TRADE ON THE GRAPH. BEGIN YOUR TRADE AT THE POINTS YOU PLOTTED IN PART (g). Draw arrows showing exports and imports. Plot the new points representing the new combinations oftomatoes and corn that each country will now be able to consume. Label your new points \"C ONSUMPTION AFTER TRADE.\" [I-Iint: Your new points must be outside their respective production-possibilities curves]
