. Country A and Country B produce the same two products, hammocks and looms. Country A
can produce a maximum of 60 hammocks or 40
looms, while Country B can produce a
maximum of 40 hammocks or 20 looms.
(a) What is the opportunity cost to produce a loom
in terms of hammocks in Country A?
(b) Which country has a comparative advantage in
producing looms? Explain.
(c) Internationally, if 1 loom is traded for 1.75
hammocks, who will benefit from trading:
Country A only, Country B only, both
countries, or neither country?
(d) Assume there is international trade.
(i) Can a country produce beyond its
production possibilities curve (PPC)?
(ii) Can a country consume beyond its PPC?

Mesa company produces wooden rocking chairs. the company has two production departments, cutting and assembly. the wood is cut and sanded in cutting and then transferred to assembly to be assembled and painted. from assembly, the chairs are transferred to finished goods inventory and then are sold. mesa has compiled the following information for the month of february: cutting department assemblydepartmentdirect materials $ 73,000 $ 13,000direct labor 73,000 108,000applied manufacturing overhead 159,000 171,000cost of goods completed and transferred out 233,000 255,000required: 1, 2, 3, & 4. prepare journal entries for the transactions in the cutting and assembly departments of mesa company. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)