For all questions, consider the following economy: Two countries, Malta (M) and Netherlands (N), can each produce only two products, avocados (A) and bananas (B). Production Possibilities curves for M and N are given by the following equations:

for Malta: A+2B=2000

for Netherlands: 4A+B=1600

Countries can freely trade with each other. Assume that people in both countries eat only fruit salad that consists of 1kg of bananas and 1kg of avocados, i.e., the consumption line is given by equation B=A. Assume that price of bananas is $3 per ton.

11) Find the total worlds production of bananas?

12) Which country benefits from trade (Malta, Netherlands, both or neither)?

13) If price of bananas is $3 per ton, what is the price of avocados?

14) Find the Gross Domestic Products (GDP) of Malta and Netherlands if the price of bananas is $3 per ton