based on the following information. Suppose a worker in Canada can produce either 100 skateboards or 200 jars of peanut butter per day. A worker in Guatemala can produce 200 skateboards or 600 jars of peanut butter per day.
-A price ratio of 1SB=2.9PB would be good for both countries, but better for Canada than Guatemala.

Question

Quizplus · Accepted Answer

The opportunity cost for Canada is 1 skateboard = 2 jars of peanut butter, and for Guatemala, it is 1 skateboard = 3 jars of peanut butter. A price ratio of 1 skateboard = 2.9 jars of peanut butter is closer to Canada's opportunity cost, making it more favorable for Canada.

Based on the Following Information