Suppose that a worker in Argentina can make two saddles or 10 bridles per month, and a worker in Brazil can make three saddles or 20 bridles per month.
a. In what sense do saddles and bridles cost less in Brazil than in Argentina?
b. In what sense do saddles cost less in Argentina than in Brazil?
c. If Argentina and Brazil were to engage in trade, which country would export which good?
d. Would the answer to the above question change if a worker in Brazil could make four saddles per month?

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The Answer of Suppose that a worker in Argentina can make two saddles or 10 bridles per month, and a worker in Brazil can make three saddles or 20 bridles per month.
a. In what sense do saddles and bridles cost less in Brazil than in Argentina?
b. In what sense do saddles cost less in Argentina than in Brazil?
c. If Argentina and Brazil were to engage in trade, which country would export which good?
d. Would the answer to the above question change if a worker in Brazil could make four saddles per month?

Suppose That a Worker in Argentina Can Make Two Saddles