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Consider two neighboring island countries, Charisma and Flatstan. Each has 72,000 labor hours available per week that it can use to produce jeans, wheat, or a combination of both. The following table shows the amount of labor hours required to produce 1 pair of jeans or 1 bushel of wheat. Jeans Wheat Country (Labor hours per pair) (Labor hours per bushel) Charisma 80 16 Fiatstan 24 12 Fiatstan Fiatstan Charisma Charisma neither country neither country has an absolute advantage in the production of jeans, and has an absolute advantage in the production of wheat. Initially, suppose Charisma uses 54,000 hours of labor per week to produce jeans and 18,000 hours per week to produce wheat, while Fiatstan uses 18,000 hours of labor per week to produce jeans and 54,000 hours per week to produce wheat. Assume there are no other countries willing to trade goods, so in the absence of trade between these two countries, each country consumes the amount of jeans and wheat it produces. 1/2 bush 1/5 bush 5 bushels Charisma's opportunity cost of producing 1 pair of jeans is of wheat, and Fiatstan's opportunity cost of producing 1 pair of jeans is 1/2 bushel 1/5 bushel Fiatstan Fiatstan 2 bushels 5 bushels Charisma Charisma of wheat. Therefore, has a comparative advantage in the production of jeans, and has a comparative advantage in the production of wheat. When neither country specializes, the total production of jeans is pairs per week, and the total production of wheat is bushels per week. Suppose that Charisma completely specializes in the production of the good in which it has a comparative advantage, producing only that good. It will produce . Suppose also that Fiatstan does not specialize and uses 54,000 hours of labor to produce jeans and 18,000 hours of labor to produce wheat. It will produce pairs of jeans and bushels of wheat. Suppose Charisma and Flatstan agree to trade with each other, exchanging 1,100 pairs of jeans for 3,300 bushels of wheat. In particular, Charisma will export the goods it produces, and Fiatstan will export the goods that Charisma does not produce. export export export export With trade, Charisma will jeans and wheat. Fiatstan will jeans and wheat. import import import import When Charisma specializes and Fiatstan still produces the combination of goods using 54,000 hours of labor to produce jeans and 18,000 hours of labor to produce wheat, the total production of jeans becomes pairs per week, and the total production of wheat becomes bushels per week