Country production possibility curve

Assignment Help Basic Computer Science
Reference no: EM131220113

Suppose the US and Japan have the following production possibility tables (final output combinations):

Japan

United States

Bolts of Cloth

Tons of Wheat

Bolts of Cloth

Tons of Wheat

1000

0

500

0

800

100

400

200

600

200

300

400

400

300

200

600

200

400

100

800

0

500

0

1000

1000

0

500

0

a. Draw each country's production possibility curve.

b. In what good does the United States have a comparative advantage? What about Japan?

c. Is there a possible trade that benefits both countries? If there are several such possible situations, please discuss ONLY one.

d. Please demonstrate your answer to point c above graphically (be sure to properly label your graph).

Reference no: EM131220113

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