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Hello, please help me with this I continue to get it incorrect. 4. Specialization and trade When a country has a comparative advantage in the
Hello, please help me with this I continue to get it incorrect.
4. Specialization and trade When 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 (PPFs) for Freedonia and Sylvania. Both countries produce lemons and coffee, each initially (i.e., before specialization and trade) producing 30 million pounds of lemons and 15 million pounds of coffee, as indicated by the grey stars marked with the letter A. or neither lemons nor coffee or neither lemons nor coffee, or both lemons and coffee. or both lemons and coffee. 80 o Sylvania 10 20 30 40 so eo 70 LEMONS (Millions of pounds) Choices Are.txt - Notepad 30 Freedonia 20 30 40 so so 70 LEMONS (Millions of pounds) File Edit 31ank#1 : 31 ank#2 : 31ank#3 : 31ank#4 : 30 Format View Help lemons, or coffee lemons, or coffee, $mi11ion pounds $Mi11ion pounds Ln8, Col 1 100% Windows (CRLF) UTF 8 Freedonia has a comparative advantage in the production of lv , while Sylvania has a comparative advantage in the production of v . Suppose that Freedonia 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 coffee. million pounds of lemons and million pounds of
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