Exhibit 29-5 -Suppose That Instead of Constant Costs of Production, the United

question 218

Essay

Exhibit 29-5 $$\begin{array} { | c | c | c | } \hline & \text { Wheat } & \text { Strawberries } \\\hline \text { Mexico } & 6 \text { bushels } & 2 \text { pints } \\\hline \text { United States } & 6 \text { bushels } & 4 \text { pints } \\\hline\end{array}$$
-Suppose that instead of constant costs of production, the United States and Mexico both had increasing costs of production.
(A) What wauld happen to the numbers in the table in Eaknbit $29 - 5$ as pratuctin was increased?
(B) What waud happen to the production possibilities cure?
(C) What waud happen to protuction in each caunty?

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