Chapter 03 Homework (?) (?) Yosemite Rainier 18 14 N PPF PISTACHIOS (Millions of pounds) PISTACHIOS (Millions of pounds) PPF 2 10 12 2 6 0 12 14 18 ALMONDS (Millions of pounds) ALMONDS ( Millions of pounds) Yosemite has a comparative advantage in the production of while Rainier has a comparative advantage in the production of Suppose that Yosemite and Rainier specialize in the production of the goods in which each has a comparative he two countries can produce a total of |million pounds of pistachios and million pounds almonds pistachios Suppose that de. Each country focuses its resources on producing only the good in which it has a comparative advantage. TH neither almonds nor pistachios million pounds of almonds for 6 million pounds of pistachios. This ratio of goods is known as the price of trade betwo both almonds and pistachios The following graph shows the same PPF for Yosemite as before, as well as its initial consumption at point A. Place a black point (plus symbol) on the graph to indicate Yosemite's consumption after trade. Note: Dashed drop lines will automatically extend to both axes