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Suppose the United States and Japan each produce only two goods and have the production possibilities shown in the figure. Without trade, Japan produces at
Suppose the United States and Japan each produce only two goods and have the production possibilities shown in the figure. Without trade, Japan produces at point A and the United States produces at point B. Two line graphs showing Japanese and U.S. production possibilities in terms of motorcycles and DVD players." Two graphs showing the production possibilities for Japan and the United States using motorcycles and DVD players as an example. Both graphs have an x-axis labeled Output of DVD Players (per day), which ranges from 1,000 to 4,000. Both graphs have a y-axis labeled Output of Motorcycles (per day), which ranges from 1,000 to 4,000. The first graph shows Japanese production possibilities. When the output of DVD players is 0, the output of motorcycles is 4,000 per day. When the output of DVD players is 1,000 per day, the output of motorcycles is 2,000 per day. When the output of DVD players is 2,000 per day, the output of motorcycles is 0. The second graph shows U.S. production possibilities. When the output of DVD players is 0, the output of motorcycles is 4,000 per day. When the output of DVD players is 1,000 per day, the output of motorcycles
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