Question: united states canada bread loaves 2 loaves 3 loaves steel...
|Bread (Loaves)||2 loaves||3 loaves|
|Steel (tons)||3 tons||1 ton|
What are the EU's relative prices (opportunity cost) of Bread and Steel in the United States and Canada?
What is the relative price of Steel in the United States if it does not trade? In Canada? Explain.
What are the upper and lower bounds for the trade price in Steel? in Bread?
Draw a hypothetical production possibility curve (PPC) for the United States and label its slope. Suppose that the United States follows its comparative advantage in deciding when to produce on its PPC. Label its production points.