Respond to all parts of the question In answering the question, you should emphasize the line of reasoning that generated your results; it is not
enough to list the results of your analysis. Include correctly labeled diagrams, if useful or required, in explaining
your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show
directional changes
OUTPUT PER WORKER PER DAY
Units of Units of
Country Cloth Food
Newland
10
2
Beeland 10
1
a
b.
The table above gives the production alternatives of two nations that are producing cloth and food, using equal
amounts of resources
1. Calculate the opportunity cost of producing a unit of cloth in Newland.
ii. Calculate the opportunity cost of producing a unit of food in Beeland.
1. Which nation has the comparative advantage in cloth production?
ii. Which nation has the comparative advantage in food production?
c. Now assume that the productivity of Beeland's workers triples for each good.
i. Which country has a comparative advantage in food production?
ii. Explain how you determined your answer.