Combination Health Care All Other Goods
A. 0 100
B. 25 90
C. 50 70
D. 75 40
E. 100 0
a. Calculate the marginal opportunity cost of each combination.
b. What is the opportunity cost of combination C?
c. Suppose a second nation has the following data. Plot the PPC, and then determine which nation has the comparative advantage in which activity. Show whether the two nations can gain from specialization and trade.