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give explanation and graphs. the more detailed the better Osten, a village in Sweden which produces chevre (a type of cheese) and wool. There are

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give explanation and graphs. the more detailed the better

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Osten, a village in Sweden which produces chevre (a type of cheese) and wool. There are 100 villagers who can make cheese, or can spin wool. The 0C for each worker for producing 1kg of this cheese is 1.5 kg of wool. Ylle is a village down the valley which also produces chevre and spins wool. There are also 100 villagers in Ylle and for these villagers the 0C of producing 1kg of cheese is 17/ 12kg of wool. Given this information, it would be better for Osten to specialise in producing wool and the terms of trade between the villages will be 1 kg of wool for 3kg of cheese

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