5. Comparative Advantage The following table describes the production possibilities of two cities in the country of Baseballia: Pairs of Red Socks per Worker per Hour Pairs of White Socks per Worker per Hour Boston 3 3 Chicago 2 1 Without trade, the price of a pair of white socks (in terms of red socks) in Boston is V of red socks, and in Chicago it is V red socks. V has an absolute advantage in the production of red socks, and V has an absolute advantage in the production of whit socks. v has a comparative advantage in the production of red socks, and V has a comparative advantage in the production 01 socks. If the cities trade with each other, Boston will export V socks, and Chicago will export V socks. The price of white socks can be expressed in terms of red socks. The highest price at which white socks can be traded that would make both citi: better off is V of red socks per pair of white socks, and the lowest price that makes both cities better off is V of red soc pair of white socks