Assume that Brazil and Argentina produce lumber and fish. Their production functions are constant cost and the production possibilities are given below. (millions of units). BRAZIL Product A B C D E F Lumber un 10 15 20 25 Fish 50 40 30 20 10 0 ARGENTINA : Product A B C D E F Lumber 12 15 Fish 60 48 34 24 12 0 1) For Brazil, calculate the opportunity cost of producing 1 unit of lumber. 2) For Argentina, calculate the opportunity cost of producing 1 unit of lumber. 3) Which country should produce lumber, and which should produce fish? Brazil should produce and Argentina should produce 4) Before trade, Brazil is producing at Production Possibilities C and Argentina is producing at Possibilities D. But the countries see the advantage of trade, and begin to specialize production based on comparative advantage. They consider 3 trades: 10 units of lumber for 30 units of fish; OR 20 units of lumber for 20 units of fish; OR 10 units of lumber for 50 units of fish. Decide which trade they will choose, and complete the following table. Before Trade Specialized The Trade After Trade Gain from Trade Production BRAZIL Lumber Fish ARGENTINA Lumber Fish