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Suppose Bolivia and Peru are considering a trade pact. They each have exactly the same amount of resources, 100% of which is devoted to producing

Suppose Bolivia and Peru are considering a trade pact. They each have exactly the same amount of resources, 100% of which is devoted to producing fresh fruit and natural gas according to the following production capabilities.

PERU BOLIVIA

Fresh Fruit 15 30

Natural Gas 30 50

Without trade, they each devote 50% of their productivity to each product.

W/O Trade: Produce and Consume

PERU BOLIVIA TOTAL

Fruit 7.5 15 22.5

Natural Gas 15 25 40

What is the most efficient way of organizing their production after they enter the trade pact?(Don't worry about how much each trades to the other, or how much each consumes. Just determine how much fruit and natural gas each should produce.)

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