Answer the following question using the information given by the accompanying table. a. Which country has an

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 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.

Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...