\fWhen a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPF=) for Candonia and Sylvania. Both countries produce potatoes and coffee, each initially (ive., before specialization and trade) producing 6 million pounds of potatoes and 3 million pounds of coffee, as indicated by the grey stars marked with the letter A. (?) Candonia Sylvania 16 14 14 PPP COFFEE (Millions of pounds) COFFEE (Millions of pounds) PPF 10 12 14 16 2 10 12 14 16 POTATOES (Millions of pounds) POTATOES (Millions of pounds) Candonia has a comparative advantage in the production of while Sylvania has a comparative advantage in the production of . Suppose that Candonia and Sylvania specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of million pounds of potatoes and million pounds of coffee. Suppose that Candonia and Sylvania agree to trade. Each country focuses its resources on producing only the good in which it has a comparative advantage. The countries decide to exchange 4 million pounds of potatoes for 4 million pounds of coffee. This ratio of goods is known as the price of trade between Candonia and Sylvania