Question: Consider the example where there are two countries, A and B who can each produce only sugar and salt. The production possibilities of Country A

Consider the 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 concentratod 100% of thoir rosources into the production of sugar, they could produco 200 lbs of sugar and if 100% in salt thon 100 lbs of salt. For Country B, if they concentrated 100% in sugar then 100 lbs of sugar and it in salt then 125 bs of salt. Assume the production possibilities curvo is linear. What is the cost of 1 lb of salt for the country with salt production comparative advantage country that produce salt at lower cost)? Round to 2 docimal places DIE TIAN

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