Question: Consider an example where there are two countries, A and B, who can each produce only sugar and salt. The production possibilities of Country A
Consider an example where there are two countries, A and B, who can each produce only sugar and salt. The production possibilities of Country A are such that if they concentrated 100% of their resources into the production of sugar, they could produce 160 lbs of sugar and if 100% in Sant then 200 lbs of salt. For Country B. if they concentrated 100into sugar then 100 lbs of sugar and if in salt then 150 lbs of salt. Assume the production possibilities ourveis linear. FM Country A's opportunity cost for 1 lb of sugar A. 0.8 lb of sugar Country B's opportunity cost for 1 lb of sugar B. 1.25 lb of sain Country A's opportunity cost for 1 lb of salt G.1.5 lb of salt Country B's opportunity cost for 1 lb of salt D.0.0667 lb of sugar
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