3. If K denotes Korea, M denotes Malaysia, L denotes lumber, and A denotes automobiles, (%)*me %] to describe the pattern of comparative advantage and L P use (%)" 4. In a new pair of PPF diagrams, illustrate the trading equilibrium with For both countries, lustrate the production point (B), the consumption point (C), the quantity of imports, and the quantity of exports

Brief Principles of Macroeconomics (MindTap Course List)
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Chapter3: Interdependence And The Gains Rrom Trade
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Hello, I am having problems with these two questions. Refer to attached picture for questions. 

Consider two countries, Korea and Malaysia, and two goods, lumber and automobiles. Korea’s PPF is biased towards automobiles, and Malaysia’s PPF is biased towards lumber. They have the normal, concave to origin, increasing opportunity cost shape.

 

 

3. If K denotes Korea, M denotes Malaysia, L denotes lumber, and A denotes automobiles,
(%)*me %]
to describe the pattern of comparative advantage
and
L
P
use
(%)"
4. In a new pair of PPF diagrams, illustrate the trading equilibrium with
For
both countries, lustrate the production point (B), the consumption point (C), the
quantity of imports, and the quantity of exports
Transcribed Image Text:3. If K denotes Korea, M denotes Malaysia, L denotes lumber, and A denotes automobiles, (%)*me %] to describe the pattern of comparative advantage and L P use (%)" 4. In a new pair of PPF diagrams, illustrate the trading equilibrium with For both countries, lustrate the production point (B), the consumption point (C), the quantity of imports, and the quantity of exports
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