2. Opportunity Cost and PPF Suppose Australia and New Zealand each have 100 acres of land available for farming of wheat and cotton. A. Graph the PPF for each country. B. Which country has comparative advantage in wheat production? In cotton production? Which country has absolute advantage in wheat production? In cotton production? C. Suppose New Zealand and Australia are consuming and producing 480 bushels of wheat and 240 bales of cotton, and 240 bushels of wheat and 480 bales of cotton respectively. Explain how both countries could be made better off by trading.
Opportunity Cost and PPF Suppose Australia and New Zealand each have 100 acres of land available for farming of wheat and cotton. Graph the PPF for…
Looking for a Similar Assignment? Our Experts can help. Use the coupon code SAVE30 to get your first order at 30% off!
