Question: Answer the following question using the information given by the accompanying table. a. Which country has an absolute advantage in the production of bicycles? Which

Answer the following question using the information given by the accompanying table.

a. Which country has an absolute advantage in the production of bicycles? Which country has an absolute advantage in the production of snowboards?
b. What is the opportunity cost of bicycles in terms of snowboards at Home? What is the opportunity cost of bicycles in terms of snowboards in Foreign?
c. Which product will Home export, and which product does Foreign export? Briefly explain why.

Home Country Foreign Country Absolute Advantage Number of bicycles produced per hour Home/Foreign ratio Number of snowboards produced per hour Home/Foreign ratio 3/4 MPLs 3 MPL 2 MPLS Comparative advantage 4 MPLE

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