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Question: suppose that in australia it takes two hours of labor...

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Suppose that in Australia, it takes two hours of labor to harvest 20 bushels of apples and three hours of labor to harvest 20 bushels of tomatoes. Further, suppose that in Brazil it takes three hours of labor to harvest 20 bushels of apples and five hours of labor to produce 20 bushels of tomatoes. I. Compute the opportunity cost per unit for each good in both countries. 2. Summarize the results in an appropriate table 3. Which of the following statements is TRUE? a. Of these two countries, Brazil has a comparative advantage in producing tomatoes. b. Of these two countries, Brazil has a comparative advantage in producing apples. c. Brazil has an absolute advantage in producing both goods. d. In trade between these two countries, Australia would gain and Brazil would lose. 4. Justify your answer. 5. What would be the specialization structure if the two countries were asked to trade?
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