3. The following table shows the amount of good A and good B that two countries could produce ifthey devoted all their resources to that good. Assume both countries have the same amount ofresources and the trade-off between good A and good B remains constant as resources are shiftedfrom one good to another. (30 points)I MICROECONOMICSYORKVILLEUNIVERSITYwww.YORKVILLEU.CACanadaIndia300500Good A400Good B950a. Which country has the absolute advantage in good A? In good B?b. What is Canada's marginal opportunity cost of producing good A? good B?c. What is India's marginal opportunity cost of producing good A? good B?d. Which country has the comparative advantage in good A? In good B?e. Based on the data given, what is the terms of trade range for good A in terms of units ofgood B?||

ILLE NIVERSITY www.YORKVILLEU.CA Canada India Good A Good B 400 300 500 950 a. Which country has the absolute advantage in good A? In good B? b. What is Canada's marginal opportunity cost of producing good A? good B? c. What is India's marginal opportunity cost of producing good A? good B? d. Which country has the comparative advantage in good A? In good B? e. Based on the data given, what is the terms of trade range for good A in terms of units of good B?