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Advanced Placement (AP), 09.07.2019 05:00 nemorinavory3832
Both microville and macroville have an equal amount of resources and the same access to production technology. the chart below shows each country's production possibilities curve for producing boats and cars. (a) which country has the absolute advantage producing cars? explain how you determined your answer. (b) what is the opportunity cost if macroville decides to use all of its resources and produce 20 boats? (c) which country has the comparative advantage in producing cars? explain how you determined your answer. (d) if each country were to specialize in producing either cars or boats and then trade for the other product, which good would each make respectively? explain how you determined your answer.
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