Suppose Canada has 400 units of labor and the United States has 800 units of labor. In Canada, 1 unit of labor can produce 10 bushels of wheat or 5 pounds of fish. In the United States, 1 unit of labor can produce 12 bushels of wheat or 6 pounds of fish. Draw the production possibilities curve for each country. Who has a comparative advantage in the production of wheat? Explain.

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The Answer of Suppose Canada has 400 units of labor and the United States has 800 units of labor. In Canada, 1 unit of labor can produce 10 bushels of wheat or 5 pounds of fish. In the United States, 1 unit of labor can produce 12 bushels of wheat or 6 pounds of fish. Draw the production possibilities curve for each country. Who has a comparative advantage in the production of wheat? Explain.

Suppose Canada Has 400 Units of Labor and the United