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Consider two neighboring Island countries called Euphoria and Bellissima. They each have 4 million labor hours available per month that they can use to produce

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Consider two neighboring Island countries called Euphoria and Bellissima. They each have 4 million labor hours available per month that they can use to produce jeans,com, or a combination of both. The following table shows the amount of jeans or corn that can be produced using 1 hour of labor. Jeans (Pairs per hour of labor) Corn (Bushels per hour of labor) Country Euphoria Bellissima 4 16 5 10 Initially, suppose Bellissima uses 1 million hours of labor per month to produce jeans and 3 million hours per month to produce corn, while Euphoria uses 3 million hours of labor per month to produce Jeans and 1 million hours per month to produce corn. Consequently, Euphoria produces 12 million palrs of jeans and 16 million bushels of corn, and Bellissima produces 5 million pairs of jeans and 30 million bushels of com. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and com it produces Euphoria's opportunity cost of producing 1 pair of jeans is of corn, and Bellissima's opportunity cost of producing 1 pair of jeans is of corn. Therefore, has a comparative advantage in the production of jeans, and has a comparative advantage in the production of com. Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces Jeans will produce million pairs per month, and the country that produces corn will produce million bushels per month In the following table, enter each country's production decision on the third row of the table (marked "Production) Suppose the country that produces jeans trades 13 million pairs of jeans to the other country in exchange for 39 million bushets of corn. In the following table, select the amount of each good that each country exports and imports in the boxes across the row marked "Trade Action, and enter each country's final consumption of each good on the line marked "Consumption." When the two countries did not specialize, the total production of jeans was 17 million pairs per month, and the total production of corn was 46 million bushets per month. Because of specialization, the total production of jeans has increased by million pairs per month, and the total production of corn has increased by million bushes per month Because macasand more online chat in romana

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