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8. Use the information in the table below to answer the following questions U.S. Argentina Wheat 50200 Beef 200 ADD

(a) Does either country have an absolute advantage in the production of wheat or beef? Explain. (b) What is the opportunity cost of wheat in each country? (c) What is the opportunity cost of beef in each country (d) Analyze the comparative advantage and opportunities for trade between the US and Argentina.

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1 Argentina has a torfur absolute advantage in both wheat (200-50) and Beef (4003 200) 2) opportunity cost of wheat in U.S 35

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