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(? Maldonia Sylvania 64 64 56 56 48 PPF 48 40 Slope: -1.5 X-Intercept: 32 SUGAR (Millions of pounds) 32 SUGAR (Millions of pounds) 32

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(? Maldonia Sylvania 64 64 56 56 48 PPF 48 40 Slope: -1.5 X-Intercept: 32 SUGAR (Millions of pounds) 32 SUGAR (Millions of pounds) 32 Y-Intercept: 48 24 24 PPP 16 16 Co 16 24 32 40 48 56 64 8 16 24 32 40 48 56 64 LEMONS (Millions of pounds) LEMONS (Millions of pounds) Maldonia has a comparative advantage in the production of , while Sylvania has a comparative advantage in the production of . Suppose that Maldonia 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 sugar and million pounds of lemons. 155 JUN

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