Country N has the comparative advantage in If these two nati

Country N has the comparative advantage in If these two nations DO NOT engage in trade, the maximum amount of cars available for consumption Country M is (i.e., the vertical-axis intercept of its CPF_w/o trade)

Solution

a) Cars because country N needs to sacrifice 3 cars for one unit of textile and country N needs to sacrifice half unit fo cars to get one unit of textile.

b) 30 units of cars. (see figre i\'s first panel on Y axis.