Question

Workers in country A can produce 200 pencils or 30 pens in a year while in country B can produce 200 pencils or 18 pens in a year. (i) Assuming each country has 50 workers, graph the Production Possibility Frontier (PPF) of each country. (ii) Explain the range of the price of a pencil in terms of pens for which the two countries might trade.

Answer 1

Answer:

y

Explanation:

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Answer 2

Explanation:

worker in country A can produce 200 pencils or 30 pens in a year while in country B can produce 200 pencils or 18 pens in a year ¹ Assuming each country has 50 worker graph the pod of each country