# Suppose that there are two countries, A and B, and two goods, X and Y. Country A

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## Question:

Suppose that there are two countries, A and B, and two goods, X and Y. Country A has a production possibility frontier (PPF) that is given by the equation X + Y = 100, while country B has a PPF that is given by the equation 2X + 3Y = 150. Determine the opportunity cost of producing X in each country and explain which country has a comparative advantage in producing X.

**Related Book For**

## Intermediate Microeconomics and Its Application

ISBN: 978-1133189039

12th edition

Authors: Walter Nicholson, Christopher M. Snyder