2) Use the date below to answer the questions that follow. Country Total Cutput Avocadoes Total Output Computers Mexico 450 180 USA 500 275 a) Graph the PPC for each country on the same graph (use a linear curve to connect the two output choices). b) Which country has absolute advantage for producing Avocados? c) Which country has absolute advantage for producing Computers? d) What is the opportunity cost for Mexico to produce avocados? 1 Avocado = computers e) What is the opportunity cost for Mexico to produce computers? 1 Computer = avocado f) What is the opportunity cost for USA to produce avocados? 1 Avocado = computer g) What is the opportunity cost for USA to produce computers? 1 Computer = avocado h) The two countries meet. They need to decide a term of trade. What would be a mutually beneficial agreement that both would be equally happy with? 1 Computer = avocados "Countries are prisoners of their PPC.......Trade can set them free". How can understanding Comparative Advantage and terms of trade help nations "Break Free" from their PPC prisons