Homework: Chapter $15$

A country may specialize in the production of a good that it can produce at a lower opportunity cost than its trading partners. Because of this comparative advantage, countries benefit when they specialize and trade with each other.

The following graphs show the production possibilities curves $($PPCs$)$ for Freedonia and Lamponia. Both countries produce grain and sugar, each initially $($i$.$e$.,$ before specialization and trade$)$ producing $30$ million pounds of grain and $15$ million pounds of sugar, as indicated by the grey stars marked with the letter A$.$

$?$

$(?)$

Lamponia

$80$