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Assignment 6_Ch 37&40 i Saved Help The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative B and for the United States is alternative U. [Note: 1 unit of apparel is 1,000 items and 1 unit of chemicals is 1 ton.] 2 points China Production Possibilities Product A B D E F Apparel (in thousands) 30 24 18 12 6 eBook Chemicals (in tons) 6 12 18 24 30 Ask U.S. Production Possibilities References Product R S T U V W Apparel (in thousands) 10 8 6 4 2 0 Chemicals (in tons 4 8 12 16 20 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two areas should specialize? Yes If so, what product should each produce? China should produce apparel The United States should produce chemicals b. What is the total gain in apparel and chemical output that would result from such specialization? Apparel: 1000 unit(s) Activate Mc Go to Sett Graw Prey. 1 of 15 Hill Next >