Maldonia has a comparative advantage in the production of while Sylvania has a comparative advantage in the production of Suppose that Maldonia 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 tea and million pounds of lemons. Suppose that Maldonia 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 lemons for 24 million pounds of tea. This ratio of goods is known as the price of trade between Maldonia and Sylvania. The following graph shows the same PPF for Maldonia as before, as well as its initial consumption at point A. Place a black point (plus symbol) on the graph to indicate Maldonias consumption after trade. Note: Dashed drop lines will automatically extend to both axes. Maldonia Consumption After Trade Maldonia has a comparative advantage in the production of while Sylvania has a comparative advantage in the production of Suppose that Maldonia 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 tea and million pounds of lemons. Suppose that Maldonia 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 lemons for 24 million pounds of tea. This ratio of goods is known as the price of trade between Maldonia and Sylvania. The following graph shows the same PPF for Maldonia as before, as well as its initial consumption at point A. Place a black point (plus symbol) on the graph to indicate Maldonias consumption after trade. Note: Dashed drop lines will automatically extend to both axes. Maldonia Consumption After Trade
Maldonia has a comparative advantage in the production of while Sylva
Maldonia has a comparative advantage in the production of while Sylvania has a comparative advantage in the production of Suppose that Maldonia 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 tea and million pounds of lemons. Suppose that Maldonia 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 lemons for 24 million pounds of tea. This ratio of goods is known as the price of trade between Maldonia and Sylvania. The following graph shows the same PPF for Maldonia as before, as well as its initial consumption at point A. Place a black point (plus symbol) on the graph to indicate Maldonias consumption after trade. Note: Dashed drop lines will automatically extend to both axes. Maldonia Consumption After Trade Maldonia has a comparative advantage in the production of while Sylvania has a comparative advantage in the production of Suppose that Maldonia 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 tea and million pounds of lemons. Suppose that Maldonia 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 lemons for 24 million pounds of tea. This ratio of goods is known as the price of trade between Maldonia and Sylvania. The following graph shows the same PPF for Maldonia as before, as well as its initial consumption at point A. Place a black point (plus symbol) on the graph to indicate Maldonias consumption after trade. Note: Dashed drop lines will automatically extend to both axes. Maldonia Consumption After Trade
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