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SCENARIO FOR THE NEXT 4 QUESTIONS:When a country has a comparative advantage in the production of a good, it means that it can produce this

SCENARIO FOR THE NEXT 4 QUESTIONS: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 2 countries Yosemite and Rainier. Both countries produce almonds and pistachios, each initially (i.e., before specialization and trade) producing 18 million pounds of almonds and 9 million pounds of Pistachios, as indicated by the grey stars marked with the letter A.

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Yosemite Rainier 48 48 42 42 36 PPF 36 30 30 24 24 PISTACHIOS (Millions of pounds) PISTACHIOS (Millions of pounds) 18 PPF 12 12 0 6 12 8 24 30 36 42 48 6 12 18 24 30 36 42 48 ALMONDS (Millions of pounds) ALMONDS (Millions of pounds) Yosemite has a comparative advantage in the production of _, while Rainier has a comparative advantage in the production of __. Suppose that Yosemite and Rainier specialize in the production of the goods in which each has a comparative advantage. After million pounds of Pistachios and specialization, the two countries can produce a total of million pounds of almonds. A A/ A

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