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The following graphs show the production possibilities frontiers (PPFs) for Candonia and Lamponia. Both countries produce potatoes and sugar, each Initially (1.e., before specialization and

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The following graphs show the production possibilities frontiers (PPFs) for Candonia and Lamponia. Both countries produce potatoes and sugar, each Initially (1.e., before specialization and trade) producing 18 million pounds of potatoes and 9 million pounds of sugar, as indicated by the grey stars marked with the letter A. (?) Candonia Lamponia 48 48 42 42 36 36 PPF 30 30 N SUGAR (Millions of pounds) 24 SUGAR (Millions of pounds) 18 PPF 12 O 0 6 12 18 24 30 36 42 48 6 12 18 24 30 36 42 48 POTATOES (Millions of pounds) POTATOES (Millions of pounds) Candonia has a comparative advantage in the production of neither potatoes nor sugar , while Lamponia has a comparative advantage in the production of both potatoes and sugar . Suppose that Candonia and Lamponia specialize in the production of the goods in which each has a million pounds of potatoes and million pounds comparative advantage. After specialization, the two countries can produce a total of of sugar

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