MindTap - Cengage Learning X X C D ng.cengage.com/staticb/ui/evo/index.html?deploymentld=5982802410503139790502050164&eISBN=97... New . . . CENGAGE MINDTAP Q Search this course ? Homework (Ch 03) X 4. Specialization and trade 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. The following graphs show the production possibilities frontiers (PPFs) for Maldonia and Desonia. Both countries produce grain and coffee, each initially (i.e., before specialization and trade) producing 24 million pounds of grain and 12 million pounds of coffee, as indicated by the grey stars marked with A-Z the letter A. ? Maldonia Desonia 64 64 56 48 PPE 48 bongo 40 40 EE (Millions of pounds) EE (Millions of pounds) 37 32 24 24 PPP Type here to search O O 810F Partly cloudy ~ ( 4.) 7:10 PM m 10/16/2021X MindTap - Cengage Learning X . . . C D ng.cengage.com/staticb/ui/evo/index.html?deploymentld=5982802410503139790502050164&elSBN=97... New Q Search this course ? CENGAGE MINDTAP X Homework (Ch 03) (?) (?) Maldonia Desonia A-Z 34 64 56 56 48 48 PPF 40 40 COFFEE (Millions of pounds) 32 32 COFFEE (Millions of pounds) ? 24 PPF 24 16 16 8 24 32 40 48 56 64 bongo 8 16 24 32 40 48 56 64 GRAIN (Millions of pounds) GRAIN (Millions of pounds) 7:11 PM O Ei e 81.F Partly cloudy ~ ( 4) Type here to search 10/16/2021MindTap - Cengage Learning X X C D ng.cengage.com/staticb/ui/evo/index.html?deploymentld=5982802410503139790502050164&eISBN=97... New . . . CENGAGE MINDTAP Q Search this course ? Homework (Ch 03) X Maldonia has a comparative advantage in the production of , while Desonia has a comparative advantage in the production of . Suppose that Maldonia and Desonia 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 coffee and million pounds of grain. Suppose that Maldonia and Desonia agree to trade. Each country focuses its resources on producing only the good in which it has a comparative A-Z advantage. The countries decide to exchange 24 million pounds of grain for 24 million pounds of coffee. This ratio of goods is known as the price of trade between Maldonia and Desonia. The following graph shows the same PPF for Maldonia as before, as well as its initial consumption at point A. Place a black point (plus symbol) on the graph to indicate Maldonia's consumption after trade. ? Note: Dashed drop lines will automatically extend to both axes. (?) Maldonia bongo 64 56 Consumption After Trade Type here to search O 81.F Partly cloudy ~ ( 4.) 7:11 PM m 10/16/2021MindTap - Cengage Learning X X C D Ang.cengage.com/staticb/ui/evo/index.html?deploymentld=5982802410503139790502050164&eISBN=97... . . . New CENGAGE MINDTAP Q Search this course ? Homework (Ch 03) X The following graph shows the same PPF for Maldonia as before, as well as its initial consumption at point A. Place a black point (plus symbol) on the graph to indicate Maldonia's consumption after trade. Note: Dashed drop lines will automatically extend to both axes. A-Z Maldonia .+ 56 Consumption After Trade ? 18 PPF Q 40 COFFEE (Millions of pounds) 32 24 bongo 16 CO Type here to search e 81.F Partly cloudy ~ ( 4.) 7:11 PM 10/16/2021MindTap - Cengage Learning X X C D ng.cengage.com/staticb/ui/evo/index.html?deploymentld=5982802410503139790502050164&eISBN=97... . . . New KK CENGAGE MINDTAP Q Search this course ? Homework (Ch 03) X (? Maldonia 64 + A-Z Consumption After Trade 48 PPF 40 32 COFFEE (Millions of pounds) ? 24 Q 16 A CO bongo 8 16 24 32 40 48 56 64 GRAIN (Millions of pounds) Type here to search O e 81.F Partly cloudy ~ ( 4.) 7:11 PM 10/16/2021MindTap - Cengage Learning X X C D ng.cengage.com/staticb/ui/evo/index.html?deploymentld=5982802410503139790502050164&eISBN=97... . . . New CENGAGE MINDTAP Q Search this course ? Homework (Ch 03) X The following graph shows the same PPF for Desonia as before, as well as its initial consumption at point A. As you did for Maldonia, place a black point (plus symbol) on the following graph to indicate Desonia's consumption after trade. A-Z Desonia 64 -+ 56 Consumption After Trade ? 18 Q 40 COFFEE (Millions of pounds) 32 24 PPF bongo 16 CO Type here to search e 81.F Partly cloudy ~ ( 4. ) 7:11 PM 10/16/2021MindTap - Cengage Learning X X C D ng.cengage.com/staticb/ui/evo/index.html?deploymentld=5982802410503139790502050164&eISBN=97... . . . New KK CENGAGE |MINDTAP Q Search this course ? Homework (Ch 03) X 40 32 COFFEE (Millions of po 24 PPF A-Z Co 8 16 24 32 40 48 56 64 GRAIN (Millions of pounds) ? True or False: Without engaging in international trade, Maldonia and Desonia 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 O False bongo Grade It Now Save & Continue Continue without saving 7:11 PM Type here to search e 81.F Partly cloudy ~ ( 4) 10/16/2021