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Question: coffee milions of pounds 3 coffee millions of pounds 64t...

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COFFEE (Milions of pounds) 3 COFFEE (Millions of pounds)
64T Sylvania u 24 24 PPF 0 16 24 32 4048 566 POTATOES (Milions of pounds) 0 16 24 32 40 56 64 POTATOES (Milions of pounds) Freedonia has a comparative advantage in the production of production of comparative advantage. After specialization, the two countri potatoes , while Sylvania has a comparative advantage in the in the production of the goods in which each has a million pounds of Suppose million pounds of coffee and coffee producing only the good in which it has a comparative Suppose that Freedonia and Sylvania agree to trade. Each advantage. The countries decide to exchange 16 million poud both potatoes and coffee ounds of coffee. This ratio of goods is known as the price of trade between Freedonia and Sylvania.
64 Sylvania 56 + 64 T 2 48 PPF 40 32 u 24 24 PPF 0 8 16 24 32 40 48 56 64 0 8 16 24 32 40 48 56 64 POTATOES (Millions of pounds) POTATOES (Millions of pounds) Freedonia has a comparative advantage in the production of production of comparative potatoes. , while Sylvania has a comparati ▼ . Suppose that Freedonia and Sylvania specialize in the production of the goods the two countries can produce a total of million pounds of coffee and potatoes coffee neither potatoes nor coffee Suppose that advantage. T of trade betw both potatoes and coffee to trade. Each country focuses its resources on producing only the good in which it has e 16 million pounds of potatoes for 16 million pounds of coffee. This ratio of goods is knd
Suppose that Freedonia and Sylvania agree to trade. Each country focuses its resources on producing only the good in which it has a advantage. The countries decide to exchange 16 million pounds of potatoes for 16 million pounds of coffee. This ratio of goods is known as the price of trade between Freedonia and Sylvania. The following graph shows the same PPF for Freedonia as before, as well as its initial consumption at point A. Place a black point (plus symbol) on the Note: D to both axes. Freedonia o 16 24 32 40 48 664 POTATOES (Milions of pounds) The following graph shows the same PPF for Sylvania as before, as well as its initial consumption at point A.
The following graph shows the same PPF for Sylivania as before, as well as its initial consumption at point A. Sylvania 0 B 1624 32 40 48 6 64 True or False: Without engaging in international trade, Freedonia and Sylvania would not have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.) O False
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