The graphs below show the production possibilities frontiers for sugar and corn in South Africa and the United States. Instructions: Round your answers to two decimal places. First, assume the countries do not trade and can only consume what they produce. a. If South Africa produces 1 million tons of sugar, how much corn will it be able to produce? ____ million tons of corn b. If the United States produces 3 million tons of corn, how much sugar will it be able to produce? _____ million tons of sugar
The graphs below show the production possibilities frontiers for sugar and corn in South Africa and the United States.
Instructions: Round your answers to two decimal places.
First, assume the countries do not trade and can only consume what they produce.
a. If South Africa produces 1 million tons of sugar, how much corn will it be able to produce?
____ million tons of corn
b. If the United States produces 3 million tons of corn, how much sugar will it be able to produce?
_____ million tons of sugar
Now suppose the countries are considering trading.
c. Which country has the
South Africa has the comparative advantage in the production of _____ .
The United States has the comparative advantage in the production of ______ .
d. If South Africa fully specializes based on comparative advantage, how much will it produce?
____million tons of sugar and ____ million tons of corn
e. If the United States fully specializes based on comparative advantage, how much will it produce?
_____ million tons of sugar and ____ million tons of corn
Trending now
This is a popular solution!
Learn your way
Includes step-by-step video
Step by step
Solved in 5 steps with 2 images
