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Below is the production possibility information of small nations Arboc and Arbez, which can produce two goods, wheat, and coffee. The maximum quantity of each good is shown in the table below. Assume the two nations trade in a world containing many small nations. Costs are constant within each country.ARBOC ARBEZWHEAT COFFEE WHEAT COFFEE120 0 120 00 30 0 20
1. What is the opportunity cost of one unit of wheat in Arboc?2. What is the opportunity cost of one unit of wheat in Arbez?3. Which country has a comparative advantage in the production of wheat?4. What is the opportunity cost of one unit of coffee in Arboc?5. What is the opportunity cost of one unit of coffee in Arbez?6. Which country has a comparative advantage in the production of coffee?
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