(A) A and B are two countries, each producing two goods - widgets and gadgets - using only one factor of production - bots. Both countries have 10 bots. Output of bot in each country are as follows: Output per bot Widget Gadget Country A 6 4 Country B 2 (1) Using David Ricardo's law of comparative advantage, identify the country that has a comparative advantage in widget. (You have to show how you reach your conclusion). (il) Will country A agree to trade 12 widget for 6 gadgets from B? Why? (ili) If the country A can exchange 6 widgets for 6 gadgets, will she gain from trade? By how much? (B) We now assume that production of widgets and gadgets needs not just bots, but also land. The quality of land is not uniform across a country and cannot be used in fixed proportion in the production of the two commodities. (i) Assuming that both countries use resources efficiently, what would happen to the (opportunity) cost of widget as more gadget is produced? (it) Which of the following shapes is representative of PPCs for the two countries? Why? B C (C) Will the country A completely specialize in the production of a commodity (i.e., produce this commodity alone)