Refer to the table Comparative Advantage and Trade. The table shows the number of laptops and phones that can be produced per unit of labor (the only input) in U.S and Brazil. Suppose that both countries have 100 million units of labor.
A. Draw the production possibility frontier for the United States, with the quantity of phones (in millions) on the x-axis and the quantity of laptops (in millions) on the y-axis.
B. Draw the production possibility frontier for Brazil with the quantity of phones (in millions) on the x-axis and the quantity of laptops (in millions) on the y-axis.
C. What is the opportunity cost of producing phones in the United States and Brazil?
D. What is the opportunity cost of producing laptops in the United States and Brazil?
E. Which country has the absolute advantage in producing laptops? Which country has the absolute advantage in producing phones? Explain your answer.
F. Which country has the comparative advantage in phones? Which country has the comparative advantage in laptops? Explain your answer.

Question

Refer to the table Comparative Advantage and Trade. The table shows the number of laptops and phones that can be produced per unit of labor (the only input) in U.S and Brazil. Suppose that both countries have 100 million units of labor.
  A. Draw the production possibility frontier for the United States, with the quantity of phones (in millions) on the x-axis and the quantity of laptops (in millions) on the y-axis.
B. Draw the production possibility frontier for Brazil with the quantity of phones (in millions) on the x-axis and the quantity of laptops (in millions) on the y-axis.
C. What is the opportunity cost of producing phones in the United States and Brazil?
D. What is the opportunity cost of producing laptops in the United States and Brazil?
E. Which country has the absolute advantage in producing laptops? Which country has the absolute advantage in producing phones? Explain your answer.
F. Which country has the comparative advantage in phones? Which country has the comparative advantage in laptops? Explain your answer.

Quizplus · Accepted Answer

The Answer of Refer to the table Comparative Advantage and Trade. The table shows the number of laptops and phones that can be produced per unit of labor (the only input) in U.S and Brazil. Suppose that both countries have 100 million units of labor.
  A. Draw the production possibility frontier for the United States, with the quantity of phones (in millions) on the x-axis and the quantity of laptops (in millions) on the y-axis.
B. Draw the production possibility frontier for Brazil with the quantity of phones (in millions) on the x-axis and the quantity of laptops (in millions) on the y-axis.
C. What is the opportunity cost of producing phones in the United States and Brazil?
D. What is the opportunity cost of producing laptops in the United States and Brazil?
E. Which country has the absolute advantage in producing laptops? Which country has the absolute advantage in producing phones? Explain your answer.
F. Which country has the comparative advantage in phones? Which country has the comparative advantage in laptops? Explain your answer.

Refer to the Table Comparative Advantage and Trade