Part (i): What is the opportunity cost of producing an additional unit of the agricultural product in the Home country?

Part (i): What is the opportunity cost of producing an additional unit of the agricultural product in the Home country?

Part (ii): What is the opportunity cost of producing an additional unit of the agricultural product in the Foreign country?

Part (iii): Which country has a comparative advantage in the production of the agricultural product? If these countries were to specialize and engage in trade, which country would produce and export each good?

Part (iv): Suppose that the Home country becomes more efficient in the production of the manufacturing product, and that aM falls to 0.4. Does this affect the countries' comparative advantages, and thus the expected trade pattern?

Part (v): Suppose that the Home country becomes even more efficient in the production of the manufacturing product, and that aM falls to 0.25. Does this affect the countries' comparative advantages, and thus the expected trade pattern?