487834, 18course id 3153954,18icontent jid- 17770821 1&step-null QUESTION 13 r p
ID: 1142450 • Letter: 4
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487834, 18course id 3153954,18icontent jid- 17770821 1&step-null QUESTION 13 r points Use the following tables to answer questions a-c. They represent the production possibilities of the two countries For example, it the uS produces 200 units of wheat i will produce Ounits of com United States Mexico Corn Production- 0 20 401 6-80 -Production | 0| 101-20-30140 Wheat Production 200 150 100 50 Aj What is the opportunity cost of producing one unit of corn in the United States (ie how many units of wheat do you have to gve up)? What is the opportunity cost of producing one unit of wheat in the United States? B) What is the opportunity cost of producing one unit of com in Mexico? What is the opportunily cost of producing one unit of wheat in Wheat Production | 201 151 101 51 0 Mexico? C) Which country has a comparative advantage in corm production? What about wheat production Words 0 Path p CHek Save and Submit to save and submit.Chek Save All Ansvers to save all annwers Save All Answers ave and Submit Show all > th Macro team 1 Macro Exam 1 Revodoc ^ 2301 Ekam 1 Revi', docx ^Explanation / Answer
A.In the US
20 units of corn can be produced and 150 units of wheat can be produced
40 units of corn and 100 units of wheat
20 units of corn=50 units of wheat
If US increases production of corn by 20 units then it has to lower production of wheat by 50 units
1 unit corn=50/20=2.5 units of wheat
1 unit of wheat=20/50=.4 unit of wheat
2.In Mexico
10 units of corn and 15 units of wheat can be produced
20 units of corn and 10 units wheat can be produced
It means that if Mexico increases production of corn by 10 units,it has to lower production of wheat by 5 units.
10 units of corn=5 units of wheat
1 unit of corn=.5 units of wheat
1 unit of wheat=2 units of corn
C.Comparative advantage is determined by lowest opportunity cost of production.
Mexico has comparative advantage in corn production
US has comparative advantage in corn production.
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