Exhibit 29-5 -Refer to Exhibit 29-5.Suppose That the Following Table Represents the Table

Exhibit 29-5
-Refer to Exhibit 29-5.Suppose that the following table represents the production of wheat and strawberries per unit of labor in the United States and Mexico:
(A)Which country has a comparative advantage in wheat production? Why?
(B)Which country has an absolute advantage in wheat? in strawberries? Why?
(C)With free trade between the United States and Mexico,is it possible that 1 bushel of wheat will trade for 1 pint of strawberries? Why or why not?
(D)Suppose the free trade price is 2 bushels of wheat for 1 pint of strawberries.Draw a diagram indicating the production possibilities curve with and without trade if the United States has 100 million units of labor.How much of each good will the United States produce?