KSuppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two goods that each country can produce in one day are presented in the table below.United StatesMexicoHamburgers (in tons)04080120Which country has an absolute advantage in producing tacos? MexicoTacos (in tons)10872360Hamburgers (in tons)081624Tacos (in tons)604020Which country has a comparative advantage in producing tacos? The United StatesSuppose the United States is currently producing 80 tons of hamburgers and 36 tons of tacos and Mexico is currently producing 16 tons of hamburgers and 20 tons of tacos. If the United States andMexico each specialize in producing only one good (the good for which each has a comparative advantage), then a total of additional ton(s) of hamburgers can be produced for the two countriescombined (enter a numeric response using an integer) and a total of additional ton(s) of tacos can be produced.

The term O.C. describes the value of the next best alternative forgone when a decision is made. It…

Answered: Suppose the United States and Mexico…

Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two goods that each country can produce in one day are Mexico United States

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains Rrom Trade

Section: Chapter Questions

Problem 6PA

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Question

K
Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two goods that each country can produce in one day are presented in the table below.
United States
Mexico
Hamburgers (in tons)
0
40
80
120
Which country has an absolute advantage in producing tacos? Mexico
Tacos (in tons)
108
72
36
0
Hamburgers (in tons)
0
8
16
24
Tacos (in tons)
60
40
20
Which country has a comparative advantage in producing tacos? The United States
Suppose the United States is currently producing 80 tons of hamburgers and 36 tons of tacos and Mexico is currently producing 16 tons of hamburgers and 20 tons of tacos. If the United States and
Mexico each specialize in producing only one good (the good for which each has a comparative advantage), then a total of additional ton(s) of hamburgers can be produced for the two countries
combined (enter a numeric response using an integer) and a total of additional ton(s) of tacos can be produced.

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