$\text { Table 55b }$
$\begin{array}{l}
\text { Units of output produced by } 1 \text { hour of labor input }\
\begin{array}{|l|l|l|}
\hline \text { Commodity } & \text { Canada } & \text { Mexico } \
\hline \text { Bread } & 3 \text { loaves } & 1 \text { loaves } \
\hline \text { Cheese } & 4 \text { pounds } & 2 \text { pounds } \
\hline
\end{array}
\end{array}$

-In Table 55b, assume that Canada decides to export bread to Mexico. Canada can sell 1 loaf of bread for ___________cheese at home in Canada, but it can sell 1 loaf of bread for _______ in Mexico. (Fill in the blanks)

Question

$\text { Table 55b }$
$\begin{array}{l}
\text { Units of output produced by } 1 \text { hour of labor input }\
\begin{array}{|l|l|l|}
\hline \text { Commodity } & \text { Canada } & \text { Mexico } \
\hline \text { Bread } & 3 \text { loaves } & 1 \text { loaves } \
\hline \text { Cheese } & 4 \text { pounds } & 2 \text { pounds } \
\hline
\end{array}
\end{array}$

-In Table 55b, assume that Canada decides to export bread to Mexico. Canada can sell 1 loaf of bread for ___________cheese at home in Canada, but it can sell 1 loaf of bread for _______ in Mexico. (Fill in the blanks)

Quizplus · Accepted Answer

In Canada, 1 hour of labor produces 3 loaves of bread or 4 pounds of cheese. Therefore, 1 loaf of bread is equivalent to 4/3 (or 1.33) pounds of cheese. In Mexico, 1 hour of labor produces 1 loaf of bread or 2 pounds of cheese, making 1 loaf of bread equivalent to 2 pounds of cheese. Thus, Canada can sell 1 loaf of bread for 1.33 pounds of cheese at home but can sell it for 2 pounds of cheese in Mexico.

Table 55b \text { Table 55b } Table 55b -In Table 55b, Assume That Canada Decides to Export Bread

$\text { Table 55b }$ -In Table 55b, Assume That Canada Decides to Export Bread