When a country specializes in the production of a good, this means that it can produce this good at a lower opportunity cost than its t Because of this comparative advantage, both countries benefit when they specialize and trade with each other. The following graphs show the production possibilities frontiers (PPFs) for Candonia and Sylvania. Both countries produce potatoes an initially (i.e., before specialization and trade) producing 24 million pounds of potatoes and 12 million pounds of sugar, as indicated by marked with the letter A. Candonia Sylvania 64 64 56 56 48 PPF 48 40 40 32 32 SUGAR (Millions of pounds) SUGAR (Millions of pounds) 24 24 PPF 16 16 A A Co Co 8 16 24 32 40 48 56 64 8 16 24 32 40 48 56 64 POTATOES (Millions of pounds) POTATOES (Millions of pounds)Candonia has a comparative advantage in the production of sugar , while Sylvania has a comparative advantage in the production of potatoes . Suppose that Candonia and Sylvania specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of million pounds of sugar and million pounds of potatoes. Suppose that Candonia and Sylvania agree to trade. Each country focuses its resources on producing only the good in which it has a comparative advantage. The countries decide to exchange 24 million pounds of potatoes for 24 million pounds of sugar. This ratio of goods is known as the terms of trade between Candonia and Sylvania.The following graph shows the same PPF for lCandonia as before, as well as its initial consumption at point a! Place a black point {cross symbol) on the graph to indicate Candonia's consumption after trade. Note: Dashed drop lines will automatically extend to both axes. Candonia Consumption After Trade 43 F'F'F 40 32 24 SUGAR (Millions of pounds) 16 l] 8 1B 24 32 40 43 56 6-4 POTATOES [Millions of pounds) The following graph shows the same PPF for Sylvania as before, as well as its initial consumption at point A. As you did for Candonia, place a black point { cross symbol) on the following graph to indicate Sylvania's consumption after trade. Sylvania Consumption After Trade 4|] 24 PF SUGAR (Millions of pounds) 15- 0 8 1B 24 32 41] 48 56 64 POTATOES (Millions of pounds) True or False: Without engaging in international trade, Candonia and Sylvania would not have been able to consume at the aftertrade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.) True or False: Without engaging in international trade, Candonia and Sylvania would not have been able to consume at the aftertrade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.) 0 True 0 False