If the fictitious country of Islandia puts all of its production resources into fish, it can produce 60 units of fish. If it puts all of its production resources into coconuts, it can produce 45 units of coconuts. If the fictitious country of Mountania puts all of its production resources into fish, it can produce 30 units of fish. If it puts all of its production resources into coconuts, it can produce 20 units of coconuts. Assume that both countries have constant cost functions for both products.
If the fictitious country of Islandia puts all of its production resources into fish, it can produce 60 units of fish. If it puts all of its production resources into coconuts, it can produce 45 units of coconuts. If the fictitious country of Mountania puts all of its production resources into fish, it can produce 30 units of fish. If it puts all of its production resources into coconuts, it can produce 20 units of coconuts. Assume that both countries have constant cost functions for both products.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
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Chapter3: Interdependence And The Gains Rrom Trade
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If the fictitious country of Islandia puts all of its production resources into fish, it can produce 60 units of fish. If it puts all of its production resources into coconuts, it can produce 45 units of coconuts. If the fictitious country of Mountania puts all of its production resources into fish, it can produce 30 units of fish. If it puts all of its production resources into coconuts, it can produce 20 units of coconuts. Assume that both countries have constant cost functions for both products.
Transcribed Image Text:a. What is the opportunity cost of producing 1 unit of fish in Islandia?
unit(s) of coconuts
b. What is the opportunity cost of producing 1 unit of coconuts in Islandia?
unit(s) of fish
c. What is the opportunity cost of producing 1 unit of fish in Mountania?
unit(s) of coconuts
d. What is the opportunity cost of producing 1 unit of coconuts in Mountania?
unit(s) of fish
e. (Click to select) has a comparative advantage in the production of fish.
(Click to select) | has a comparative advantage in the production of coconuts.
f. What will be the terms of trade for fish?
Between
and
unit(s) of coconuts
g. What will be the terms of trade for coconuts?
Between
unit(s) of fish
and
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