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 trading partner. Because of this comparative advantage, both countries benefit when they specialize and trade with each other. (that is, before specialization and trade) producing 12 million pounds of grain and 6 million pounds of sugar, as indicated by grey points (star symbols) labeled point A. Candonia has a comparative advantage in the production of , while Sylvania has a comparative advantage in the production of . If each fully specializes (that is, produces only the good for which each has a comparative advantage), the most the two countries can produce is million pounds of grain and million pounds of sugar. 1 pound of sugar in exchange for 1 pound of grain. The countries decide to exchange 4 million pounds of grain for 4 million pounds of sugar. The following graph shows the same PPF for Candonia as before, as well as its initial consumption at point A. Use the green line (triangle symbol) to plot the trading possibilities line (TPL) for Candonia. Then place the black point (plus symbol) on the trading possibilities line to indicate Candonia's consumption after specialization and trade. Note: Dashed drop lines will automatically extend to both axes. As you did for Candonia, use the green line (triangle symbol) to plot the trading possibilities line (TPL) for Sylvania. Then place the black point (plus symbol) on the trading possibilities line to indicate Sylvania's consumption after specialization and trade. True or False: Without engaging in international trade, Candonia and Sylvania would not have been able to consume at the afterade bundles. (Hint: Base your answer to this question on the answers you previously entered on this page.) True False