Arremprs 1.4\ Neep the nignest

(1.4)/(4)

\ 3. Gains from trade\ Suppose there exist two imaginary countries, Denali and Everglades. Their labor forces are each capable of supplying four million hours per week that can be used to produce pistachios, chinos, or some combination of the two. The following table shows the amount of pistachios or chinos that can be produced by one hour of labor.\ \\\\table[[,Pistachios,Chinos],[Country,(Pounds per hour of labor),(Pairs per hour of labor)],[Denali,6,12],[Everglades,4,16]]\ Suppose that initially Denali uses 1 million hours of labor per week to produce pistachios and 3 million hours per week to produce chinos, while Everglades uses 3 million hours of labor per week to produce pistachios and 1 million hours per week to produce chinos. As a result, Denali produces 6 hillion pounds of pistachios and 36 million pairs of chinos, and Everglades produces 12 million pounds of pistachios and 16 million pairs of chinos. ssume there are no other countries willing to engage in trade, so, in the absence of trade between these two countries, each country consumes the mount of pistachios and chinos it produces.

Suppose there exist two imaginary countries, Denali and Everglades. Their labor forces are each capable of supplying four million hours per week that can be used to produce pistachios, chinos, or some combination of the two. The following table shows the amount of pistachios or chinos that can be produced by one hour of labor. uppose that initially Denali uses 1 million hours of labor per week to produce pistachios and 3 million hours per week to produce chinos, while verglades uses 3 million hours of labor per week to produce pistachios and 1 million hours per week to produce chinos. As a result, Denali produces 6 illion pounds of pistachios and 36 million pairs of chinos, and Everglades produces 12 million pounds of pistachios and 16 million pairs of chinos. ssume there are no other countrjes willing to engage in trade, so, in the absence of trade between these two countries, each country consumes the mount of pistachios and chinos it produces