Suppose there exists to imaginary countries, glacier and Everglades. Their labor forces are each capable of supplying 4 million hours per day that can be used to produce pistachios, chinos, or some combination of the two. The following table shows the amount of pistachios or chinos that can be produced by one hour of labor. Pistachios. Chinos.Glacier 8. 16.Everglades 5. 20.Suppose that initially glacier uses 1 million hours of labor per day to produce pistachios and 3 million hours per day to produce chinos while Everglades uses 3, million hours of labor per day to produce pistachios and 1 million hours per day to produce chinos as a result, glacier produces 8,000,000 pounds of pistachios in 48 million pairs of chinos and Everglades produces 15,000,000 pounds of pistachios and 20 million pairs of chinos. Assume there are no other countries willing to engage in trade so in the absence of trade between these two countries, each country consumes the amount of pistachios and chinos it produces.Glaciers opportunity, cost of producing 1 pound of pistachios is one over two pair of Cheetos and Everglades opportunity. Cost of producing 1 pound of pistachios is one over four pairs of chinos. Therefore Everglades has a comparative advantage in the production of pistachios in glacier has a comparative advantage in the production of chinos Suppose that each country completely specialize in the production of the good in which it has a comparative advantage, producing only that good in this case, the country that produces pistachios or produce 8,000,000 pounds per day and the country that produces chinos will produce 40 million pairs per day When the two countries did not specialized the total production of pistachios, was 23,000,000 pounds per day, and the total production of chinos was 68 million Paris per day because of specialization the total production of pistachios has increased by 15,000,000 pounds per day and the total production of Cheetos has increased by 32 million Paris per day Because the two countries produce more pistachios and Martinez under specialization, each country is able to gain From trade, calculate the gains from trade, that is the amount by which each country has increases its consumption of each good relative to the first row of the table in the following table enter the differences in the boxes across the last row

Calculate the gains from trade-that is, the amount by which each country has increased its consumption of each good relative to the first row of t table. In the following table, enter this difference in the boxes across the last row (marked "Increase in Consumption"). Glacier Everglades Pistachios Chinos Pistachios Chinos (Millions of pounds) (Millions of pairs) (Millions of pounds) (Millions of pairs) Without Trade Production 20 Consumption 48 With Trade Production Trade action Consumption Gains from Trade Increase in Consumption