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Gallons of bovine semen

Canada and USA PPF’s (Alternative example: bovine semen and dog food ). 400. *Both countries have the same scarce resources (time and labor) to produce bovine semen and dog food*. Canada’s PPF. 300. Gallons of bovine semen. 200. 100. USA’s PPF.

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Gallons of bovine semen

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  1. Canada and USA PPF’s (Alternative example: bovine semen and dog food) 400 *Both countries have the same scarce resources (time and labor) to produce bovine semen and dog food* Canada’s PPF 300 Gallons of bovine semen 200 100 USA’s PPF What country has an absolute advantage in producing bovine semen? What country has an absolute advantage in producing dog food? 0 0 6000 3000 9000 12000 Pounds of dog food

  2. Canada and USA PPF’s (Alternative example: bovine semen and dog food) 400 *Both countries have the same scarce resources (time and labor) to produce bovine semen and dog food* Canada’s PPF 300 Gallons of bovine semen 200 100 USA’s PPF 0 0 6000 3000 9000 12000 Pounds of dog food

  3. Canada and USA PPF’s (Alternative example: bovine semen and dog food) 400 *Both countries have the same scarce resources (time and labor) to produce bovine semen and dog food* Canada’s PPF 300 Gallons of bovine semen 200 100 USA’s PPF 0 0 6000 3000 9000 12000 Pounds of dog food

  4. Canada and USA PPF’s (Alternative example: bovine semen and dog food) 400 *Both countries have the same scarce resources (time and labor) to produce bovine semen and dog food* Canada’s PPF 300 Gallons of bovine semen 200 100 USA’s PPF What country has a comparative advantage in producing bovine semen? What country has a comparative advantage in producing dog food? 0 0 6000 3000 9000 12000 Pounds of dog food

  5. Canada and USA PPF’s (Alternative example: bovine semen and dog food) 400 *Both countries have the same scarce resources (time and labor) to produce bovine semen and dog food* Canada’s PPF 300 Gallons of bovine semen 200 100 USA’s PPF If each country specializes in their comparative advantage, trades and splits production evenly: how many gallons of bovine semen does each country receive? dog food? 0 0 6000 3000 9000 12000 Pounds of dog food

  6. Canada and USA PPF’s (Alternative example: bovine semen and dog food) 400 *Both countries have the same scarce resources (time and labor) to produce bovine semen and dog food* Canada’s PPF 300 3000 pounds of dog food each, 200 gallons of bovine semen each Notice Canada is no better but is also not worse off while the U.S. is better off What might Canada do? Gallons of bovine semen 200 USA’s PPF 100 If each country specializes in their comparative advantage, trades and splits production evenly: how many gallons of bovine semen does each country receive? dog food? 0 0 6000 3000 9000 12000 Pounds of dog food

  7. Canada and USA PPF’s (Alternative example: bovine semen and dog food) 400 *Both countries have the same scarce resources (time and labor) to produce bovine semen and dog food* Canada’s PPF 300 NEW CANADA RESULT NEW USA RESULT Gallons of bovine semen 200 Canada may bargain towards a better than 50/50 split… GIVE ME SOME MORE OF THAT DOG FOOD! USA’s PPF 100 0 0 6000 3000 9000 12000 Pounds of dog food

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