2. Consider a world consisting of two countries, Andalusia and Bestland. Each country has 500 units of labor, the only input. In Andalusia, it takes 5 units of labor to produce a computer and 10 units of labor to produce a unit of textiles. In Bestland, it takes 10 units of labor to produce a computer and 5 units of labor to produce a unit of textiles. a) Sketch each country's production possibilities frontier. Label the vertical and horizontal intercepts and slopes. b) What is the opportunity cost of producing a computer in Andalusia? Why? What is the opportunity cost of producing a unit of textiles in Andalusia? Why? What is the opportunity cost of producing a computer in Bestland ? Why? What is the opportunity cost of producing a unit of textiles in Bestland? Why? C) In autarky, what would be the relative price of computers in Andalusia? In Bestland? Why? d) Which country has a comparative advantage in producing which good? Why? e) If Andalusia and Bestland specialize according to comparative advantage, how many computers and how many units of textiles will Andalusia produce? Bestland? Why? f) After several years of trade, Andalusia and Bestland pass new laws stating that half of each of Andalusia's labor force must be used in each industry. In other words, half of Andalusia's labor must produce computers and half must produce textiles. The same is true in Bestland. Under the new laws, how many computers and how many units of textiles will Andalusia produce? Bestland? Why? How big is the economic cost of the laws that restrict specialization and trade between Andalusia and Bestland