In the following table, enter each country's production decision on the third row of the table $($labeled "Production"$).$ Comparative advantage and gains from trade

Consider two neighboring island countries called Bellissima and Dolorium. They each have $4$ million labor hours available per month that they can use

to produce jeans, corn, or a combination of both. The following table shows the amount of jeans or corn that can be produced using $1$ hour of labor.

Initially, suppose Bellissima uses $1$ million hours of labor per month to produce jeans and $3$ million hours per month to produce corn, while Dolorium

uses $3$ million hours of labor per month to produce jeans and $1$ million hours per month to produce corn. Consequently, Bellissima produces $8$ million

pairs of jeans and $48$ million bushels of corn, and Dolorium produces $15$ million pairs of jeans and $20$ million bushels of corn. Assume there are no

other countries willing to trade goods, so in the absence of trade between these two countries, each country consumes the amount of jeans and corn it

produces.

Bellissima's opportunity cost of producing $1$ pair of jeans is

of corn, and Dolorium's opportunity cost of producing $1$ pair of jeans is

of corn. Therefore,

has a comparative advantage in the production of jeans, and

$\_$ has a

comparative advantage in the production of corn.

Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In

this case, the country that produces jeans will produce

million pairs per month, and the country that produces corn will produce

million bushels per month. In the following table, enter each country's production decision on the third row of the table $($labeled "Production"$).$

Increase in Consumption

Suppose the country that produces jeans trades $18$ million pairs of jeans to the other country in exchange for $54$ million bushels of corn.

In the previous table, use the dropdown menus across the row labeled "Imports$/$Exports$"$ to select the amount of each good that each country imports

and exports. Then enter each country's final consumption of each good on the line labeled "Consumption."

When the two countries did not specialize, the total production of jeans was $23$ million pairs per month, and the total production of corn was $68$ million

bushels per month. Because of specialization, the total production of jeans has increased by

million pairs per month, and the total production

of corn has increased by

million bushels per month.

Because the two countries produce more jeans and more corn under specialization, each country is able to gain from trade.

Calculate the gains from trade$-$that is$,$ the amount by which each country has increased its consumption of each good relative to the first row of the

previous table. Enter this difference in the boxes across the last row $($labeled "Increase in Consumption"$).$

Increase in Consumption

Suppose the country that produces jeans trades $18$ million pairs of jeans to the other country in exchange for $54$ million bushels of corn.

In the previous table, use the dropdown menus across the row labeled "Imports$/$Exports$"$ to select the amount of each good that each country imports

and exports. Then enter each country's final consumption of each good on the line labeled "Consumption."

When the two countries did not specialize, the total production of jeans was $23$ million pairs per month, and the total production of corn was $68$ million

bushels per month. Because of specialization, the total production of jeans has increased by

million pairs per month, and the total production

of corn has increased by

million bushels per month.

Because the two countries produce more jeans and more corn under specialization, each country is able to gain from trade.

Calculate the gains from trade$-$that is$,$ the amount by which each country has increased its consumption of each good relative to the first row of the

previous table. Enter this difference in the boxes across the last row $($labeled "Increase in Consumption"$).$