Assume that the United States and India enjoy constant opportunity costs in the production possibilities shown in the table.
1 answer:
The nation that has the absolute advantage in peanuts is India.
<h3>How to solve for the absolute advantage of these countries</h3>a. The country that has the absolute advantage in the pounds of peanuts is India. They are able to produce 10 million worth of the product.
b. This is in the attachment
c. From the calculated opportunity costs, India has been shown to have the comparative advantage in peanuts so they have to specialize here.
The US on the other hand has to specialize in pecans because they have the comparative advantage in it.
d) The PPC for each country is a diagram
e. ) The terms of trade would be a pound of peanut for a pound of pec an for the countries.
Based on this the US would produce 10 units for pecans. They would use 5 units and exchange the remaining 5 units of pecans for 5 units of peanuts from India.
India is also going to do likewise.
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The area of polygon MNOPQR is equal to the area of a rectangle that is 15 square units + area of a rectangle that is 2 square units.
<h3>How to calculate the area of this polygon?</h3>First of all, we would determine the area of rectangle MNSR with a side length of 3 units as follows:
Area = L × W
Area = 3 × 5
Area = 15 square units.
Next, we would determine the area of rectangle MNSR with its dimensions as follows:
- Length = 7 - 5 = 2 units.
- Width = 3 - 2 = 1 unit.
Thus, its area is given by:
Area = L × W
Area = 2 × 1
Area = 2 square units.
Therefore, the area of polygon MNOPQR is equal to the area of a rectangle that is 15 square units + area of a rectangle that is 2 square units.
Read more on rectangle here: brainly.com/question/25292087
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