March 1- PRINCIPLES O X MindTap - Cengage Learning X HE ACCT100-03 Syllabus - FINANCE X | G Google /g.cengage.com/staticb/ui/evo/index.html?deploymentld=5982812480131064961974525393&elSBN=9780357133606&id=10923978 CENGAGE | MINDTAP Homework (Ch 03) 3. Gains from trade Consider two neighboring island countries called Euphoria and Arcadia. They each have 4 million labor hours available per week that they can use to produce corn, jeans, or a combination of both. The following table shows the amount of corn or jeans that can be produced using 1 hour of labor. Corn Jeans Country ( Bushels per hour of labor) (Pairs per hour of labor) Euphoria 5 20 Arcadia 16 Initially, suppose Arcadia uses 1 million hours of labor per week to produce corn and 3 million hours per week to produce jeans, while Euphoria uses 3 million hours of labor per week to produce corn and 1 million hours per week to produce jeans. Consequently, Euphoria produces 15 million bushels of corn and 20 million pairs of jeans, and Arcadia produces 8 million bushels of corn and 48 million pairs of jeans. 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 corn and jeans it produces. of jeans, and Arcadia's opportunity cost of producing 1 bushel of corn is Euphoria's opportunity cost of producing 1 bushel of corn is has a comparative has a comparative advantage in the production of corn, and of jeans. Therefore, _ advantage in the production of jeans. Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In million bushels per week, and the country that produces jeans will produce this case, the country that produces corn will produce million pairs per week. In the following table, enter each country's production decision on the third row of the table (marked "Production")