Based on your answers to Problem 31-1, which nation has a comparative advantage in producing pastries? Which nation has a comparative advan- tage in producing sandwiches?

Problem 31-1

To answer the questions below, consider the following table for the neighboring nations of North- land and West Coast. The table lists maximum feasible hourly rates of production of pastries if no sandwiches are produced and maximum feasible hourly rates of production of sandwiches if no pas- tries are produced. Assume that the opportunity costs of producing these goods are constant in both nations.

a. What is the opportunity cost of producing pas- tries in Northland? Of producing sandwiches in Northland?

b. What is the opportunity cost of producing pas- tries in West Coast? Of producing sandwiches in West Coast?

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Product Pastries (per hour) Sandwiches (per hour) Northland West Coast 50,000 100,000 25,000 200,000