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(b) Consider the hypothetical production possibility tables for the US and the UK US Production Points (Episodes) TV Show A B C D Real Housewives 0 20 40 60 I'm a Celebrity 15 10 5 0 UK Production Points (Episodes) TV Show R S T U Real Housewives 0 20 40 60 I'm a Celebrity 60 40 20 0 (1) Draw the PPF for each country. What is the equation of the line for each PPF. Using these equations, determine the opportunity cost of each TV program in each country. 20/1 A 800 Page 5 (ii) Explain which country has an absolute and comparative advantage in which TV programs. Briefly explain your answer. If trade is allowed between the two countries, which country should specialize in which program and why? (Hi) If trade were to occur, what is the range of prices for which both countries would be happy to trade? Choose a price within this range and draw the PPFs for both countries: with and without trade. (iv) Suppose the optimum mix of TV programs before specialization and trade were alternative B in the US and S in the UK. What would be the gains from specialization and trade across both countries? (35 marks total)