Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two goods that each country can produce in one day are presented in the table below.

 

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Suppose the United States is currently producing 200 tons of hamburgers and 60 tons of tacos and Mexico is currently producing 20 tons of hamburgers and 50 tons of tacos. United States Hamburgers (in tons) Mexico Hamburgers (in tons) Tacos (in tons) 180 Tacos (in tons) 150 100 50 100 200 120 60 10 20 300 30 a. Which country has an absolute advantage in producing tacos? b. Which country has a comparative advantage in producing tacos? c. Relative to their current production levels: if the United States and Medico each specialize in producing only one good then a total of hamburgers can be produced for the two countries combined. d. Relative to their current production levels: if the United States and Medico each specialize in producing only one good then a total of can be produced for the two countries combined. additional ton(s) of additional ton(s) of tacos Suppose the United States is currently producing 200 tons of hamburgers and 60 tons of tacos and Mexico is currently producing 20 tons of hamburgers and 50 tons of tacos. United States Hamburgers (in tons) Mexico Hamburgers (in tons) Tacos (in tons) 180 Tacos (in tons) 150 100 50 100 200 120 60 10 20 300 30 a. Which country has an absolute advantage in producing tacos? b. Which country has a comparative advantage in producing tacos? c. Relative to their current production levels: if the United States and Medico each specialize in producing only one good then a total of hamburgers can be produced for the two countries combined. d. Relative to their current production levels: if the United States and Medico each specialize in producing only one good then a total of can be produced for the two countries combined. additional ton(s) of additional ton(s) of tacos

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Solution a United states b Opportunity cost of tacos in US 300180 16 hamburger Opportunity co... View the full answer