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Assume that Colombia had 1,600,000 workers and Mexico had 800,000 workers, respectively. This is the only...

Assume that Colombia had 1,600,000 workers and Mexico had 800,000 workers, respectively. This is the only factor input to produce beef and fish.  

Units of labor required per unit of output:

     Colombia   Mexico

Beef 4      4

   Fish   8      2

Please sketch the PPFs (put beef on the horizontal axis) and find the following numbers:

(1) The maximum possible output of beef in Colombia.

(2) The autarky price ratio (the price of beef divided by the price of fish) in Mexico.

3. Does Columbia have comparative adavantage in producing beef?

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