when a country has a comparative advantage in the production Of a good, it means that it can produce this good at a lower opportunity cost than it's trading partner. then the country will specialize in the production of this good and trade it for other goods. The following graph in pic is question one. after the graph the Question continues and Question 2 is as follow " Maldonio has a comparative advantage in the production of_______(options are potatoes, coffee, neither potatoes nor coffee,both potatoes and coffee), while Lamponia has a comparative advantage in the production of_____(option are potatoes, coffee, neither potatoes nor coffee, both potatoes and coffee). suppose that Maldonia and Lamponia specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of [ ] millions pounds of potatoes and [ ] millions pounds of coffee. Suppose that Maldonia and Lamponia agree to trade. each country focuses it's resources on producing only the good in which it has a comparative advantage. the countries decide to exchange 16 million pounds of potatoes for 16 million pounds of coffee. This ratio of good is known as the price of trade between Maldonia and Lamponia. Question 3 The following graph shows the same PPF for Maldonia as before, as well as it's initial consumption at point A. Place a black point (plus symbol) on the graph to indicate Maldonia's consumption after trade. Question 4 The following graph shows the same PPF for Lamponia as before, as well as it's initial consumption at point A. As you did for Maldonia, place a black point (plus symbol) on the following graph to indicate Lamponia's consumption after trade. Question 5 True or false: without engaging in international trade, Maldonia and Lamponia would have been able to consume at the after-trade consumption bundles.

The following graphs show the production possibilities frontiers (PPFs) for Maldonia and Lamponia. Both countries produce potatoes and coffee, each initially (i.e., before specialization and trade) producing 24 million pounds of potatoes and 12 million pounds of coffee, as indicated by the grey stars marked with the letter A. Maldonia Lamponia PPF COFFEE (Millions of pounds) COFFEE (Millions of pounds) co O 18 24 32 40 48 80 64 16 32 40 56 POTATOES (Millions of pounds) POTATOES (Millions of pounds)