i. Is trade possible between Canada and Portugal? Justify your answer using the concepts of opportunity cost and gains from trade. marks)

ii. What is the possible consumption basket (meat, potatoes) under the following circumstances: (a) With trade. (b) Without trade

	Minutes required to make one unit of commodity		Number of units of commodity produced in 10 hrs		Current production mix
	Meat	Potatoes	Meat	Potatoes	Meat	Potatoes
Portugal	20 min	10 min	30 kg	60 crates	15 kg	30 crates
Canada	60 min	15 min	10 kg	40 crates	5 kg	20 crates

Answer rating: 100% (QA)

i Is trade possible between Canada and Portugal Yes trade is possible between Canada and Portugal Both countries have different opportunity costs in p... View the full answer