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The following information is applicable for the first 6 questions. Assume that the world economy consists of two countries: Bangashia and Kiritia. Both countries are

The following information is applicable for the first 6 questions. Assume that the world economy consists of two countries: Bangashia and Kiritia. Both countries are trying to protect their low-lying islands from disappearing under rising water and production in both countries is limited to rice and fish. If r denotes production of rice and f denotes production of fish, then f = - 2r + 10 is Production Possibilities Curve (PPC) in Kiritia and f = - r + 10 is the PPC in Bangashia. Which country benefits from trade if in equilibrium only Kiritia produces both products?

Neither

Kiritia only

Bangashia only

Both

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