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45 Country A and B each have 2000 units of labour. In Country A, one unit of labour can produce 7 kilograms of cheese or

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45 Country A and B each have 2000 units of labour. In Country A, one unit of labour can produce 7 kilograms of cheese or 42 kilograms of coffee. In Country B, one unit of labour can produce 16 kilograms of cheese or 24 kilograms of coffee. Suppose Country B follows its comparative advantage in deciding what to produce and trades with Country A at a trade price of 4.5 kilograms of coffee per kilogram of cheese, and Country B consumes 16800 kilograms of cheese at home, then Country B's gain from trade would be kilograms of coffee. Assuming both countries can meet the trading demand of each other. (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES, AND NO SEPARATOR FOR THOUSANDS.) Finis 39 45 44 40 37 Next Page 41 42 43 38 Prev Page 36

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