Figure 1 Milk 6 Use the production possibilities frontier in Figure 1 to answer the questions...

 

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Figure 1 Milk 6 Use the production possibilities frontier in Figure 1 to answer the questions below. Assume each country has the same number of workers and that each axis is measured in tons per month. New Zealand Milk 10 Brazil Beef 2 5 Beef a) Brazil currently produces 10 tons of milk and no beef. If Brazil decides to produce 1 ton of beef, what is Brazil's opportunity cost of the ton of beef in terms of milk? Show your work. b) which country has a comparative advantage in the production of beef? Show your work. c) which country has an absolute advantage in producing Milk? Beef? d) Based on your answer to (b), can you determine which country should export beef? Who will import beef? e) New Zealand will specialize and trade in which good? Briefly explain why. f) State the winners and losers in each country as a result of the trade in the short run. Why? Figure 1 Milk 6 Use the production possibilities frontier in Figure 1 to answer the questions below. Assume each country has the same number of workers and that each axis is measured in tons per month. New Zealand Milk 10 Brazil Beef 2 5 Beef a) Brazil currently produces 10 tons of milk and no beef. If Brazil decides to produce 1 ton of beef, what is Brazil's opportunity cost of the ton of beef in terms of milk? Show your work. b) which country has a comparative advantage in the production of beef? Show your work. c) which country has an absolute advantage in producing Milk? Beef? d) Based on your answer to (b), can you determine which country should export beef? Who will import beef? e) New Zealand will specialize and trade in which good? Briefly explain why. f) State the winners and losers in each country as a result of the trade in the short run. Why?

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Answer Opportunity cost is the cost of foregone alternative In other word... View the full answer