Exhibit 29-4

Exhibit 29-4
-(A)
Suppose country A has 100 units of labor and country B has 200 units of labor.Based on the information in Exhibit 29-4,draw the production possibilities curve for both countries,with radios on the horizontal axis.What is the slope of each curve?
(B)
Suppose the posttrade relative price is 1/3 radio per banana,or equivalently 1 radio per 3 bananas.Draw the posttrade production possibilities curve for each country and identify the production point for each country.