The following hypothetical production possibilities tables for China and Canada. Assume that, before specialization and trade, the optimal product mix for China is alternative B and for Canada is alternative U. China Production Possibilities Product A B C D E F Apparel (in thousands) 60 48 36 24 12 0 Chemicals (in tons) 0 12 24 36 48 60 Canada Production Possibilities Product R S U V W Apparel (in thousands) 20 16 12 8 4 0 Chemicals (in tons 0 8 16 24 32 40 a. Are comparative cost conditions such that the two areas should specialize? (Click to select) : If so, what product should each produce? China should produce (Click to select) Canada should produce (Click to selec ) b. What is the total gain in apparel and chemical output that would result from such specialization? Instructions: Enter your responses as whole numbers. Apparel: units Chemicals: tons c. What are the limits of the terms of trade? Limits of the terms of trade = ]units of apparel for 1 ton of chemicals and [ ]units of apparel for 2 tons of chemicals. Suppose that the actual terms of trade are 1 unit of apparel for 11/2 units of chemicals and that 8 units of apparel are exchanged for 12 units of chemicals. What are the gains from specialization and trade for each nation? Gain of units of apparel and tons of chemicals