The following hypothetical production possibilities tables for China and Canada. Assume that, before specialization and trade, the optimal product mix for China is alternative

The following hypothetical production possibilities tables for China and Canada. Assume that, before specialization and trade, the optimal product mix for China is alternative D and for Canada is alternative S. China Production Possibilities Product A B C D E F Apparel (in thousands) 50 30 20 10 Chemicals (in tons) 20 40 60 86 100 Canada Production Possibilities Product R S T U V W Apparel (in thousands) 150 120 90 60 30 Chemicals (in tons) 30 60 90 120 150 a. Are comparative cost conditions such that the two areas should specialize? (Click to select) v If so, what product should each produce? China should produce (Click to select) v Canada should produce (Click to select) 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?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 12 units of chemicals and that 20 units of apparel are exchanged for 30 units of chemicals. What are the gains from specialization and trade for each nation? Gain of units of apparel and tons of chemicals