MINDTAP Aplia Homework Production Possibilities Frontier Fra

MINDTAP Aplia Homework: Production Possibilities Frontier Framework c Back to Assignment ttempts1 Keep the Highest: 1/4 7. Specialization and trade When a country specialzes in the production of a good, this means that it can produce this good at a lower opportunity cost than its tradng partner Because of this comparative advantaçe, 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 and tea, each. nitially (e., before specialization and trade) producing 24 million pounds of potatoes and 12 million pounds of tea, as indicated by the grey stars marked with the letter A Candonia Sylvania 32 POTATOES \'Mions of pour 242241 44 84 POTATOES TMeions of pouros)

Solution

Can answer only four parts according to chegg policy.

Candonia has comparative advantage in tea as it\'s opportunity cost of 32/48 is less than that if sylvan is 48/24.

In production of potatoes.(24/48 viz 48/32 of Candonia)

48 million of tea produced by Candonia only

48 million of potatoes produced by sylvania