Question: I need help answering this question. This is for the final exam. Cars 30 25 Cars 20 12 15 9 10 6 5 W 1

I need help answering this question. This is for the final exam.

I need help answering this question. This is for the final exam.

Cars 30 25 Cars 20 12 15 9 10 6 5 W 1 2 3 4 5 6 7 Trucks 1 2 3 4 Trucks Country A Country B The above figures illustrates production possibilities frontiers for Countries A and B. The two countries have the same amount of resources that they could be using to produce cars or trucks, or a combination of the two. Country has an absolute advantage in producing cars. Country has an absolute advantage in producing trucks. Country has a comparative advantage in producing trucks. The following is the range for the price (P) of a truck, or terms of trade, that would benefit both countries:

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