MindTap - Cengage Learning X W Student Home - GOWMU X W Homework (Ch 03): Do Your Hom x MindTap - Cengage Learning X + V X -> C eng.cengage.com/staticb/ui/evo/index.html?deploymentld=598313188950126479299021883&elSBN=9780357133668&id=1602432282&snapshotld=3139610& A Update M Gmail YouTube e Maps Translate Global Bussines accounting- part 2 2 Cengage Learning Q W CIS COURSE Angie CENGAGE | MINDTAP Q Search this course ? My Home Homework (Ch 03) X Courses 4. Specialization and trade Catalog and Study Tools When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. Rental Options A-Z The following graphs show the production possibilities frontiers (PPFs) for Freedonia and Lamponia. Both countries produce lemons and sugar, each College Success Tips initially (i.e., before specialization and trade) producing 12 million pounds of lemons and 6 million pounds of sugar, as indicated by the grey stars marked with the letter A. Career Success Tips ? Help ? (?) Give Feedback Freedonia Lamponia 32 32 pongo 28 28 24 PPF SUGAR (Millions of pounds) SUGAR (Millions of pounds) PPP A+ Co Co A A A 8 12 16 20 24 28 32 8 12 16 24 28 32 LEMONS (Millions of pounds LEMONS (Millions of pounds) Type here to search O A= O 9:14 PM 9/14/2022MindTap - Cengage Learning X W Student Home - GOWMU X W Homework (Ch 03): Do Your Hom x MindTap - Cengage Learning X + V X > C eng.cengage.com/staticb/ui/evo/index.html?deploymentld=598313188950126479299021883&eISBN=9780357133668&id=1602432282&snapshotld=3139610& A Update M Gmail YouTube e Maps Translate Global Bussines accounting- part 2 2 Cengage Learning Q W CIS COURSE Angie CENGAGE | MINDTAP Q Search this course ? My Home Homework (Ch 03) X Courses Freedonia has a comparative advantage in the production of , while Lamponia has a comparative advantage in the production of . Suppose that Freedonia and Lamponia specialize in the production of the goods in which each has a Catalog and Study Tools comparative advantage. After specialization, the two countries can produce a total of million pounds of sugar and million pounds of lemons. Rental Options A-Z College Success Tips Suppose that Freedonia and Lamponia agree to trade. Each country focuses its resources on producing only the good in which it has a comparative advantage. The countries decide to exchange 12 million pounds of lemons for 12 million pounds of sugar. This ratio of goods is known as the price of Career Success Tips trade between Freedonia and Lamponia. ? Help The following graph shows the same PPF for Freedonia as before, as well as its initial consumption at point A. Place a black point (plus symbol) on the Give Feedback graph to indicate Freedonia's consumption after trade. Note: Dashed drop lines will automatically extend to both axes. pongo Freedonia 32 28 Consumption After Trade 24 PPF A+ (Millions of pounds 16 Type here to search O CABOO O 64 F ~ 9 0 0 "(1) 9:15 PM 9/14/2022MindTap - Cengage Learning X W Student Home - GOWMU X W Homework (Ch 03): Do Your Hom x MindTap - Cengage Learning X + V X -> C ong.cengage.com/staticb/ui/evo/index.html?deploymentld=598313188950126479299021883&eISBN=9780357133668&id=1602432282&snapshotld=3139610& A Update M Gmail YouTube e Maps Translate Global Bussines accounting- part 2 2 Cengage Learning Q W CIS COURSE Angie CENGAGE | MINDTAP Q Search this course ? My Home Homework (Ch 03) X Courses The following graph shows the same PPF for Lamponia as before, as well as its initial consumption at point A. Catalog and Study Tools As you did for Freedonia, place a black point (plus symbol) on the following graph to indicate Lamponia's consumption after trade. A-Z Rental Options ? College Success Tips Career Success Tips Lamponia 32 ? Help Give Feedback 28 Consumption After Trade 24 pongo 16 SUGAR (Millions of pounds) 12 PPF Co A A A+ 0 8 12 16 20 24 28 32 LEMONS (Millions of pounds) True or False: Without engaging in international trade, Freedonia and Lamponia would have been able to consume at the after-trade consumption Type here to search O O 64 F ~ D 0 0 61) 9:15 PM 9/14/2022MindTap - Cengage Learning X W Student Home - GOWMU X W Homework (Ch 03): Do Your Hom x MindTap - Cengage Learning X + V X -> C eng.cengage.com/staticb/ui/evo/index.html?deploymentld=598313188950126479299021883&eISBN=9780357133668&id=1602432282&snapshotld=3139610& A Update M Gmail YouTube e Maps Translate Global Bussines accounting- part 2 2 Cengage Learning Q W CIS COURSE Angie CENGAGE | MINDTAP Q Search this course ? My Home Homework (Ch 03) X Courses -+ 28 Catalog and Study Tools Consumption After Trade 24 A-Z Rental Options 20 College Success Tips 16 SUGAR (Millions of pounds) Career Success Tips 12 PPP ? Help 8 Give Feedback A 0 8 12 16 20 24 28 32 LEMONS (Millions of pounds) pongo True or False: Without engaging in international trade, Freedonia and Lamponia would have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.) O True False A+ Grade It Now Save & Continue Continue without saving Type here to search O CAOOO A= O 64 F ~ 9 0 7 6 1) 9:16 PM 9/14/2022