Suppose two countries, Russia and Sweden, each produce only paper and cars. Russia can produce 8 tons of paper or 4 million cars each year. Sweden can produce 25 tons of paper or 5 million cars each year.

a. draw the production possibilities frontier for each country.

b. Both countries want 2 million cars each year and as much paper as they can produce along with 2 million cars. Find this point on each production possibilities frontier.

c. Suppose the countries specialize.Which, Swedenor Russiawill produce cars?

d. Once they specialize, suppose they work out a trade of 2 million cars for 6 tons of paper. How much will each country produce?