monsider two neighboring island countries called Dolorium and Arcadia. They each have 4 million labor hours available per i roduce com, jeans, or a combination of both. The following table shows the amount of corn or jeans that can be produced Country Dolorium Arcadia Corn (Bushels per hour of labor) 8 Jeans (Pairs per hour of labor) 32 12 24 Initially, suppose Arcadia uses million hours of labor per month to produce corn and 3 million hours per month to produce jeans 3 million hours of labor per month to produce corn and 1 million hours per month to produce jeans. Consequently, Dolorium produ bushels of cons and 32 million pairs of jeans, and Arcadia produces 12 million bushels of com and 72 million pairs of jeans. Assun countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of ca produces Dolorium's opportunity cost of producing 1 bushel of com is of jeans, and Arcadia's opportunity cost of producing 1 b of jeans. Therefore, has a comparative advantage in the production of corn, and has 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 on this case, the country that produces corn will produce million bushels per month, and the country that produces jeans will pro million pairs per month In the following table, enter each country's production decision on the third row of the table (marked "Production Suppose the country that produces corn trades 26 million bushes of corn to the other country in exchange for mim mework (Ch 03) Attempts: Keep the Highest: 75 3. Gains from trade Consider two neighboring island countries called Dolorium and Arcadia. They each have 4 million labor hours available per month that they can use to produce com, 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 (Bushels per hour of labor) Country Dolorium Jeans (Pairs per hour of labor) 32 24 8 12 Arcadia 1 Initially, suppose Arcadia uses 1 million hours of labor per month to produce com and 3 million hours per month to produce jeans, while Dolorum uses 3 million hours of labor per month to produce corn and 1 million hours per month to produce jeans. Consequently, Dolorium produces 24 million bushels of com and 32 million pairs of jeans, and Arcadia produces 12 million bushels of corn and 72 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 com and jeans it produces Dolorum's opportunity cost of producing 1 bushel of com is of jeans, and Arcadia's opportunity cost of producing 1 bushel of corn is of jeans. Therefore, has a comparative advantage in the production of corn, and has a comparative 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 this case, the country that produces corn will produce million bushels per month and the country that produces jeans will produce million pairs per month mework (Ch 03) produces. Dolorium's opportunity cost of producing 1 bushel of corn is of jeans, and Arcadia's opportunity cost of producing 1 bushel of corn is of jeans. Therefore, has a comparative advantage in the production of corn, and has a comparative 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 this case, the country that produces corn will produce million bushels per month, and the country that produces jeans will produce million pairs per month. In the following table, enter each country's production decision on the third row of the table (marked "Production). Suppose the country that produces corn trades 26 million bushels of corn to the other country in exchange for 78 million pairs of jeans In the following table, select the amount of each good that each country exports and imports in the boxes across the row marked Trade Action, and enter each country's final consumption of each good on the line marked "Consumption. When the two countries did not specialize, the total production of corn was 36 milion bushels per month, and the total production of jeans was 104 million pairs per month. Because of specialization, the total production of corn has increased by million bushe's per month, and the total production of jeans has increased by million pairs per month Because the two countries produce more com and more jeans under specialization, each country is able to gain from trade. Calculate the gains from trade-that is, the amount by which each country has increased its consumption of each good relative to the first row of the table. In the following table, enter this difference in the boxes across the last row marked "Increase in Consumption"). When the two countries did not specialize, the total production of corn was 36 million bushels per month, and the total production of jeans was 104 million pairs per month. Because of specialization, the total production of corn has increased by million bushels per month, and the total production of jeans has increased by million pairs per month Because the two countries produce more corn and more jeans under specialization, each country is able to gain from trade. Calculate the gains from trade-that is, the amount by which each country has increased its consumption of each good relative to the first row of the table. In the following table, enter this difference in the boxes across the last row (marked "Increase in Consumption). Dolorium Corn Jeans (Millions of bushels) (Millions of pairs) Arcadia Corn Jeans (Millions of bushels) (Millions of pairs) 24 12 32 32 72 24 12 72 Without Trade Production Consumption With Trade Production Trade action Consumption Gains from Trade Increase in Consumption ODD monsider two neighboring island countries called Dolorium and Arcadia. They each have 4 million labor hours available per i roduce com, jeans, or a combination of both. The following table shows the amount of corn or jeans that can be produced Country Dolorium Arcadia Corn (Bushels per hour of labor) 8 Jeans (Pairs per hour of labor) 32 12 24 Initially, suppose Arcadia uses million hours of labor per month to produce corn and 3 million hours per month to produce jeans 3 million hours of labor per month to produce corn and 1 million hours per month to produce jeans. Consequently, Dolorium produ bushels of cons and 32 million pairs of jeans, and Arcadia produces 12 million bushels of com and 72 million pairs of jeans. Assun countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of ca produces Dolorium's opportunity cost of producing 1 bushel of com is of jeans, and Arcadia's opportunity cost of producing 1 b of jeans. Therefore, has a comparative advantage in the production of corn, and has 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 on this case, the country that produces corn will produce million bushels per month, and the country that produces jeans will pro million pairs per month In the following table, enter each country's production decision on the third row of the table (marked "Production Suppose the country that produces corn trades 26 million bushes of corn to the other country in exchange for mim mework (Ch 03) Attempts: Keep the Highest: 75 3. Gains from trade Consider two neighboring island countries called Dolorium and Arcadia. They each have 4 million labor hours available per month that they can use to produce com, 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 (Bushels per hour of labor) Country Dolorium Jeans (Pairs per hour of labor) 32 24 8 12 Arcadia 1 Initially, suppose Arcadia uses 1 million hours of labor per month to produce com and 3 million hours per month to produce jeans, while Dolorum uses 3 million hours of labor per month to produce corn and 1 million hours per month to produce jeans. Consequently, Dolorium produces 24 million bushels of com and 32 million pairs of jeans, and Arcadia produces 12 million bushels of corn and 72 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 com and jeans it produces Dolorum's opportunity cost of producing 1 bushel of com is of jeans, and Arcadia's opportunity cost of producing 1 bushel of corn is of jeans. Therefore, has a comparative advantage in the production of corn, and has a comparative 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 this case, the country that produces corn will produce million bushels per month and the country that produces jeans will produce million pairs per month mework (Ch 03) produces. Dolorium's opportunity cost of producing 1 bushel of corn is of jeans, and Arcadia's opportunity cost of producing 1 bushel of corn is of jeans. Therefore, has a comparative advantage in the production of corn, and has a comparative 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 this case, the country that produces corn will produce million bushels per month, and the country that produces jeans will produce million pairs per month. In the following table, enter each country's production decision on the third row of the table (marked "Production). Suppose the country that produces corn trades 26 million bushels of corn to the other country in exchange for 78 million pairs of jeans In the following table, select the amount of each good that each country exports and imports in the boxes across the row marked Trade Action, and enter each country's final consumption of each good on the line marked "Consumption. When the two countries did not specialize, the total production of corn was 36 milion bushels per month, and the total production of jeans was 104 million pairs per month. Because of specialization, the total production of corn has increased by million bushe's per month, and the total production of jeans has increased by million pairs per month Because the two countries produce more com and more jeans under specialization, each country is able to gain from trade. Calculate the gains from trade-that is, the amount by which each country has increased its consumption of each good relative to the first row of the table. In the following table, enter this difference in the boxes across the last row marked "Increase in Consumption"). When the two countries did not specialize, the total production of corn was 36 million bushels per month, and the total production of jeans was 104 million pairs per month. Because of specialization, the total production of corn has increased by million bushels per month, and the total production of jeans has increased by million pairs per month Because the two countries produce more corn and more jeans under specialization, each country is able to gain from trade. Calculate the gains from trade-that is, the amount by which each country has increased its consumption of each good relative to the first row of the table. In the following table, enter this difference in the boxes across the last row (marked "Increase in Consumption). Dolorium Corn Jeans (Millions of bushels) (Millions of pairs) Arcadia Corn Jeans (Millions of bushels) (Millions of pairs) 24 12 32 32 72 24 12 72 Without Trade Production Consumption With Trade Production Trade action Consumption Gains from Trade Increase in Consumption ODD