Suppose the U.S. can produce 10 units of food and 5 units of clothing (or any such linear combination) and Canada can produce 6 units of food and 4 units of clothing (or any such linear combination)
If trade occurs between these two countries, which should produce more food and which more clothing?
The U.S. has a comparative advantage in food, 5/10 < 4/6. Canada has a comparative advantage in clothing, 5/10 < 4/6. The U.S. should produce food and Canada should produce clothing.
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In the above figure, starting at E1, if there is a supply shock that is permanent, the
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Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow. 
Figure 8.5 Refer to Figure 8.5. If no drones are produced, total variable costs are
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