Please note the assumptions. Use the table below to answer the following questions:

Assume: 1) only two commodities are produced; 2) there are constant ratios of input to output whatever the level of output of coffee and bananas; and 3) competition preva-ls in all markets. Labor hours per keg of Labor hours per kilogram of coffee Peruvia Zululand bananas 2. 3. 4. 5. 6. 7. 8. 9. Which nation has an absolute advantage in coffee production? Which nation has an absolute advantage in bananas production? Peruvia's opportunity cost to produce an additional keg of coffee is Peruvia's opportunity cost to produce an additional kilo of bananas is Zululand's opportunity cost to produce an additional keg of coffee is bananas. Zululand's opportunity cost to produce an additional kilo of bananas is Which nation has a comparative advantage in coffee production? Which nation has a comparative advantage in banana production? Describe the adjustment process in Peruvia as international trade begins: kilos of bananas. kegs of coffee. kilos of kegs of coffee. b. d. e. g. h. k. What happens to the domestic price of coffee? What happens to the quantity of coffee purchased? What happens to the quantity of coffee produced? Does Peruvia export or import coffee? What happens to the domestic price of bananas? What happens to the quantity of bananas purchased? What happens to the quantity of bananas produced? Does Peruvia export or import bananas? What group in Peruvia gains from trade? What group in Peruvia loses from trade? Does Peruvia as a whole gain from international trade? Explain.