Shortcakes and things

In the context of the increasing returns model, individuals can only gain from trade when they are different from the person they are trading with. Select Answer True FalseGains from trade according to increasing returns is the idea that... Seiect Answer 0 opportunity cost of doing something falls the more you do something 0 opportunity cost of doing something increases the more you do something 0 opportunity cost of doing something never changes The increasing returns theory to trade is useful in explaining why countries that are very different can gain when they trade with each other. Select Answer True O FalseSelect Answer O Both Robinson 1 and Robinson 2 was worse off because of specialization and trade Robinson 1 gained from specialization and trade, Robinson 2 did not Robinson 2 gained from specialization and trade, Robinson 1 did not C Both Robinson 1 and Robinson 2 was better off because of specialization and tradeWhen Robinson was cloned and Robinson 1 specialized in fishing while Robinson 2 specialized in picking coconuts, and then the two traded, what happened?Robinson 2 (Increasing Returns) Production with Trade: Consumption with Robinson 2 produces Trade: Robinson 2 this many coconuts 26 now consumes this because of specializing 22 many fish and in trade G 20 coconuts because of 0 18 trade c 16 0 14 Full Screen 0 2 4 6 8 10 12 14 16 18 20 22 24 26 Fish Consumption and Production without Trade: Robinson 2 consuming at a Robinson 2 produced and consumed this point that was not feasible many of fish and coconuts in autarky before. Have more of both goods, so better off with trade