Question

Whin a country has a comparative adin Lhe production of a good, it means that it can at à lm ithi production of ths opportunity cost s trading partna. T Thans the good and tr Both coiprodute m and suear, each initially , bore sp cialization and trad) producing 24 mn pounds of lmots and 12 million pounds of sugar, indicated by the gray th ltter A Sylhanis hasrodudion f theeceds total mlien whik Suppose that Friidonia has a comparative advantage in the production of à compar諕rve advantage In the proudtn d Freudenla and Sylvantà specialus lhe: producton dfth숱 godsin mhch sich has comparative adwànlage. After speaàluation, thù two counties can producc a total d□ milion pounds of Suppose that Freedontà and Sylvan'a are to triad乱Each auntry foarsea its resortes dn xchänge 16n pounds of los for 16 milion pounds of supar. Thh riio of goods is kon is the prics of trade bitwiun Fr donia and Sylana al part A place a black pone (plus symbol) det th graph u, mica Freedona's consumplut Note: Dashid drop Is will automatically extd to both The olldwing graph shows th PPE for Sy ss before, as wll as ts initial consumption As you did for Friido place aback point (pu mbl)v allanig oiph to d to cosume at trade consumpt n bundkiくHint. Base t this question on you prevouily entered onthis pae} False

Answer 1

mom the ppwe can ser that, 3 G卬.HU on: leman 482 umits in

48 millian pound ot sugan and 18 i Pounds of lemom Hue Countries Sylvan 1へ 48 32 Camsumptian 14 Aften thaude 1 G 12 12 24 32 24 32 8 e com sume at a paimt which is beyond their PPF. e.