MindTap - Cengage Learning X Dashboard X + V X -> C eng.cengage.com/staticb/ui/evo/index.html?eISBN=9780357133606&id=1834966531&snapshotld=3545333& G ABP Marvin v CENGAGE | MINDTAP Q Search this course ? My Home Homework (Ch 03) X 3. Gains from trade Courses Suppose there exist two imaginary countries, Yosemite and Congaree. Their labor forces are each capable of supplying four million hours per day that Catalog and Study Tools can be used to produce shorts, almonds, or some combination of the two. The following table shows the amount of shorts or almonds that can be Rental Options produced by one hour of labor. A-Z College Success Tips Shorts Almonds Career Success Tips Country (Pairs per hour of labor) ( Pounds per hour of labor) Yosemite 8 16 ? Help Congaree 20 Give Feedback Suppose that initially Yosemite uses 1 million hours of labor per day to produce shorts and 3 million hours per day to produce almonds, while bongo Congaree uses 3 million hours of labor per day to produce shorts and 1 million hours per day to produce almonds. As a result, Yosemite produces 8 million pairs of shorts and 48 million pounds of almonds, and Congaree produces 15 million pairs of shorts and 20 million pounds of almonds. Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two countries, each country consumes the amount of shorts and almonds it produces. Yosemite's opportunity cost of producing 1 pair of shorts is 2 pounds of almonds, and Congaree's opportunity cost of producing 1 pair of shorts A+ is of almonds. Therefore, has a comparative advantage in the production of shorts, and has a comparative advantage in the production of almonds. 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 shorts will produce million pairs per day, and the country that produces almonds will produce million pounds per day. Type here to search a 135 p 9 N 590F 1 561) 11:08 PM 9/25/2023