5. Would the United States benefit from a trade? Why or why not (use data from the chart to explain your answer)? 6. What would need to happen for Brazil to benefit from the trade?
5. Would the United States benefit from a trade? Why or why not (use data from the chart to explain your answer)? 6. What would need to happen for Brazil to benefit from the trade?
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section7.5: Long-run Production Costs
Problem 1YTE
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The chart is already done. I need help with the last two questions
Transcribed Image Text:soybeans.
Directions: Calculate the per unit opportunity cost for soybeans and sugar in the United States and
Brazil and then use that information to answer the questions that follow.
Calculate the per unit
opportunity cost of
producing Sugar
54
Calculate the
per
unit
Soybeans
opportunity cost of
producing Soybeans
Sugar
United States
108 tons
0.18
20 tons
Brazil
86 tons
0.11
10 tons
8.6
2 Who has the absolute advantage in producing soybeans? Why?
Who has the comparative advantage in producing soybeans? Why (use data from the chart to explain
your answer)?
3.
Who has the comparative advantage in producing sugar? Why (use data from the chart to explain
your answer)?
4.
5. Would the United States benefit from a trade? Why or why not (use data from the chart to explain your
answer)?
6. What would need to happen for Brazil to benefit from the trade?
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