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 its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFs) for Candonia and Lamponia. Both countries produce grain and sugar, each initially (i.e., before specialization and trade) producing 6 million pounds of grain and 3 million pounds of sugar, as indicated by the grey stars marked with the letter A.

Candonia Lamponia 16 14 14 12 12 PPF 10 10 SUGAR ( Millions of pounds) SUGAR (Millions of pounds) PPF 4 4 A 2 2 2 4 10 12 14 16 2 4 8 10 12 14 16 GRAIN (Millions of pounds) GRAIN (Millions of pounds)Candonia 14 Consumption After Trade 12 10 SUGAR ( Millions of pounds) PPF A A 2 4 6 8 10 12 14 GRAIN (Millions of pounds)Lamponia 14 Consumption After Trade 12 PPF 10 SUGAR ( Millions of pounds) 4 2 2 10 12 14 GRAIN (Millions of pounds)