Question: PLEASE ANSWER ALL PARTS AND DRAW THE PPF GRAPHS: ( 2 ) Mexico and Brazil both produce paper and cement. Suppose a Brazilian worker can
PLEASE ANSWER ALL PARTS AND DRAW THE PPF GRAPHS:
Mexico and Brazil both produce paper and cement. Suppose a Brazilian worker can produce tons of paper per hour or ton of cement per hour. Meanwhile, a Mexican worker can produce tons of paper or tons of cement per hour.
a Which country has the absolute advantage in the production of both goods? Explain.
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b Draw PPF for both countries.
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c Which country has the comparative advantage in cement?
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d Which country has the comparative advantage in paper?
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