Mr. abed collected data on the production of orange and apple in both Australia and Chain by using per unit (1) of resource. The following table represents his collected data>
table : Production per unit (1) of resources
country apple orange
Australia 50 20
china 2 12
questions:
(a) Which country has an absolute advantage in the production of apple: of Orange?
(b) What is the apportunity cost of price of producting an apple at in Australia? in china?
(c) Which country has a comparative advantage in the production of apple? of orange?
(d) Suppose that Australia had only 2 units of resources while china has 10 units of resources.
Draw each country's production possibility curve> (assume constant costs).