Extra Credit - Extra Credit 1. The only two countries in...

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Extra Credit 1. The only two countries in the world, Alpha and Omega, face the following production possibilities frontiers (all units measured in tons). Alpha’s Production Possibilities Frontier Omega’s Production Possibilities Frontier 25 50 75 100 125 150 175 200 225 250 peanuts 25 50 75 100 125 150 175 200 225 250 275 300 popcorn 25 50 75 100 125 150 175 200 225 peanuts 25 50 75 100 125 150 175 200 225 250 275 300 popcorn a) Which country has the absolute advantage in producing popcorn? b) Which country has the absolute advantage in producing peanuts? c) What is Alpha’s opportunity cost of producing one ton of peanuts? d) What is Omega’s opportunity cost of producing one ton of peanuts? e) Assume that each country decides to use half of its resources in the production of each good. Show these points on the graphs for each country as point A. f) If these countries choose not to trade, what would be the total world production of popcorn and peanuts based on the points you drew?
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Extra Credit - Extra Credit 1. The only two countries in...

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