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In: Economics

Assume the US can produce 30 barrels of oil or 15 tons of wheat, while Canada...

Assume the US can produce 30 barrels of oil or 15 tons of wheat, while Canada can produce 50 barrels of oil OR 20 tons of wheat. What is the opporunity cost ratios (oil to wheat)for each country? If Canada and the US are trading, who will be exporting Oil? What can the importing nation do to encourage oil production (if it chooses)?

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Rahul Sunny answered 2 years ago
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