Suppose that each worker in the Foreign country can produce two cars or three TVs. Assume that

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Suppose that each worker in the Foreign country can produce two cars or three TVs. Assume that Foreign also has four workers.
a. Graph the production possibilities frontier for the Foreign country.
b. What is the no-trade relative price of cars in Foreign?
c. Using the information provided in Problem 2 regarding Home, in which good does Foreign have a comparative advantage and why?
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International Economics

ISBN: 978-1429278447

3rd edition

Authors: Robert C. Feenstra, Alan M. Taylor

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