1.
Argentina: opp cost of beef is 1/2 fruit, opp cost of fruit is 2 beef
Peru: opp cost of beef is 1 fruit, opp cost of fruit is 1 beef
Argentina has comparative advantage in beef.
2. Peru will export fruit because it exports the item in which it has a comparative advantage.
3. Between 1 and 2 metric tons of beef/month
4. Argentina because it can produce more beef with the same resources as Peru.
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