Chapter 3, Problem 2SQ

(a)

To determine

The country with absolute advantage in the production of cheese and cars.

(b)

To determine

Relative price of cheese in two countries.

(c)

To determine

Opportunity cost of cheese in two countries.

(d)

To determine

Comparative advantage in cheese and cars in two countries.

(e)

To determine

Upper and lower bounds of trade prices for cheese.

(f)

To determine

PPC curve for France.