1. Countries A and B both can produce two goods, X and Y. If country A produces only good X, it can produce 30 units of X; if country A produces only good Y, it can produce 10 units of Y. If country B produces only good X, it can produce 40 units of X; if country B produces only good Y, it can produce 40 units of Y. Assume that both countries have homogenous resources so that the opportunity costs remain constant.
a. What are countries A’s and B’s opportunity costs of producing both goods?
b. Who has a comparative advantage in producing these two goods?
c. Suppose that without trade, country A would produce 15 units of X and 5 units of Y, and country B would produce 20 units of X and 20 units of Y. Please explain how trade can benefit both countries.
d. What is the possible range of the terms of trade for voluntary trade to take place?
可以幫我解這4個小題嗎 拜託了~
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