The Bahamas and India Produce Both Pineapple and Rice (Both

question 5

Essay

The Bahamas and India produce both pineapple and rice (both measured in tons). The table below illustrates their production possibilities. $$\begin{array} { cccc } { \text { The Bahamas } } && { \text { India } } \\\text { Rice } & \text { Pineapple } & \text { Rice } & \text { Pineapple } \\0 & 100 & 0 & 50 \\5 & 90 & 5 & 47.5 \\10 & 80 & 10 & 45 \\15 & 70 & 15 & 42.5 \\20 & 60 & 20 & 40 \\25 & 50 & 25 & 37.5 \\50 & 0 & 100 & 0\end{array}$$ (a) In the Bahamas, what is the opportunity cost of a ton of pineapples, and of a ton of rice?
(b) In India, what is the opportunity cost of a ton of pineapple, and of a ton of rice?
(c) Which country has a comparative advantage in the production of pineapple?
(d) Show how if each country specialized in that good for which it has a comparative advantage and split the resulting production, each would be able to consume more than if they did not trade.

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