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Assume the following information about Russia and Canada for the production of cases of vodka and pallets of construction grade 2 x 4 lumber.

Assume the following information about Russia and Canada for the production of cases of vodka and pallets of construction grade 2 x 4 lumber. With one unit of production (a mixture of land, labor, capital, and technology) Russia can produce 10 cases of vodka or 8 pallets of 2 x 4 lumber. Canada can produce 6 cases of vodka or 12 pallets of 2 x 4 lumber with each unit of production. Each country dedicates a total of 1000 units of production for vodka and lumber. This information is reproduced in the following table. Country Russia Canada Vodka (Cases) 10 6 Lumber (Pallets) 8 12 If Russia and Canada each dedicate 400 units of production to vodka and 600 units of production to lumber, what is the total amount of vodka and lumber that will be produced? If Russia and Canada decide to specialize in the production of vodka and lumber, what is the total amount of vodka and lumber that will be produced? It will be beneficial for both Russia and Canada to trade as long as the trading ratio of vodka to lumber is between

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