The following production possibilities schedule shows the quantities of soybeans and oil that can be produced in Canada and Mexico with one unit of equivalent resources. $$\begin{array}{l}
\begin{array} { | l | l | l | }
\hline & \begin{array} { l }
\text { Soybeans } \
\text { (bushels) }
\end{array} & \begin{array} { l }
\text { Oil } \
\text { (barrels) }
\end{array} \
\hline \text { Canada } & 60 & 10 \
\hline \text { Mexico } & 24 & 8 \
\hline
\end{array}\
\text { TABLE 33- } 3
\end{array}$$
-Refer to Table 33- 3. Mexico would not gain by producing and exporting oil and importing soybeans unless it received

Question

The following production possibilities schedule shows the quantities of soybeans and oil that can be produced in Canada and Mexico with one unit of equivalent resources. $$\begin{array}{l}
\begin{array} { | l | l | l | } 
\hline & \begin{array} { l } 
\text { Soybeans } \
\text { (bushels) }
\end{array} & \begin{array} { l } 
\text { Oil } \
\text { (barrels) }
\end{array} \
\hline \text { Canada } & 60 & 10 \
\hline \text { Mexico } & 24 & 8 \
\hline
\end{array}\
\text { TABLE 33- } 3
\end{array}$$
-Refer to Table 33- 3. Mexico would not gain by producing and exporting oil and importing soybeans unless it received

Quizplus · Accepted Answer

Mexico can produce 24 bushels of soybeans or 8 barrels of oil with one unit of resources. If it produces and exports 8 barrels of oil, it can import 24 bushels of soybeans. So, Mexico would not gain by producing and exporting oil and importing soybeans unless it received more than 3 bushels of soybeans per barrel of oil.

The Following Production Possibilities Schedule Shows the Quantities of Soybeans