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What is Scotland's opportunity cost of producing one motorcycle?e. What is Ireland's opportunity cost of producing one guitar?f. What is Scotland's opportunity cost of producing one guitar?g. If each country specialises in the production of the product in which it has a comparative advantage, who should produce motorcycles?h. If each country specialises in the production of the product in which it has a comparative advantage, who should produce guitars?Q2. Define the concept of efficiency. Define the concept of equity. Using the tax system as an example to explain how a trade off exists between economic efficiency and equity. c. Explain using the graph above what would happen if the price was initially $20?Identify any surplus or shortage on the graph above. Q5.
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