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The table below shows the production possibilities for Concordia and Harmonia. CONCORDIA'S PRODUCTION Product A B D E Pork 12 9 6 3 Beans 5
The table below shows the production possibilities for Concordia and Harmonia. CONCORDIA'S PRODUCTION Product A B D E Pork 12 9 6 3 Beans 5 10 15 20 HARMONIA'S PRODUCTION Product A B E Pork 12 9 6 Beans 6 12 18 24 a. What are the costs of the two products in each country? Round your answers below to 2 decimal places. Concordia: 1 unit of pork costs 1.67 beans. 1 unit of beans costs 0.6 units of pork. Harmonia: 1 unit of pork costs 2 beans. 1 unit of beans costs 0.5 units of pork. b. Which products should each country specialize in and export? Concordia: | Pork Harmonia: |Beans c. If, prior to specialization and trade, Concordia produced combination D and Harmonia produced combination B, what would be the total gains from trade? Pork: Beans: d. What would be the range of feasible terms of trade between the two countries? Feasible terms of trade 1 unit of pork between .67 and 2 bear bean between 0.5 and 0.6 units of pork
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