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An average worker in Brazil can produce an ounce of soybeans in 20 minutes and an ounce of coffee in 60 minutes, while an average worker in Peru can produce an ounce of soybeans in 80 minutes and an ounce of coffee in 120 minutes. Also suppose that both countries have 960 minutes of total worker time available in a given period.
(i) Draw fully labeled production possibility frontiers for Brazil and Peru. Please put coffee on the X axis and soybeans on the Y axis.
(ii) Specify mutually beneficial terms of trade between the two countries.
(iii) On the same graph as the PPFs, draw fully labeled consumption possibility frontiers based on the terms of trade you've given in part ii
Please explain in detail
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