Question: an average worker in brazil can produce an ounce of...
An average worker in Brazil can produce an ounce of soybeans in 20 minutes and an ounce of coffee in 60 minutes, while an average worker in Peru can produce an ounce of soybeans in 80 minutes and an ounce of coffee in 120 minutes. Suppose each worker has 480 total minutes to produce coffee and soybeans.
(i) Draw PPF's for Brazil and Peru. Please put coffee on the Y-axis.
(ii) Suggest a mutually beneficial term of trade between the two countries.
(iii) On the same graphs as part (i), draw CPF's consistent with your answer in part (ii)