In the following table, enter each country’s production decision on the third row of the table (marked “Production”).
Suppose the country that produces corn trades 18 million bushels of corn to the other country in exchange for 54 million pairs of jeans.
In the following table, select the amount of each good that each country exports and imports in the boxes across the row marked “Trade Action,” and enter each country’s final consumption of each good on the line marked “Consumption.”
When the two countries did not specialize, the total production of corn was 23 million bushels per week, and the total production of jeans was 68 million pairs per week. Because of specialization, the total production of corn has increased by____ million bushels per week, and the total production of jeans has increased by____ million pairs per week.
Because the two countries produce more corn and more jeans under specialization, each country is able to gain from trade.
MY Grades – Prin of Microeconc X|\@ DO HomeworkX| Suppose that Italy and Denmark X| Homework Help – Q& A from Onli X* _ Mind Tap – Cengage LearningX+IIX:a>& https’ //ng . cengage . com / static / nb / vi / evo / index . html ? deploymentId = 567.3.6 6.80.09257 1 3:0 0 07 .3 626.59 & el SEN = 9787.3.37096.57 7 & snapshotId = 10428.56&id = 420 ..`-`. MINDTAPI FFrom [engageQ Search this course*@- Tiffanylyn ~Homework ( Ch 03 )XConsider two neighboring island countries called Arcadia and Dolorium . They each have 4 million labor hours available per week that they can use toproduce corn , jeans , or a combination of both . The following table shows the amount of corn or jeans that can be produced using 1 hour of labor .5.)CornJeansCountry( Bushels per hour of labor )( Pairs per hour of labor )Arcadia810Dolorium520Initially , suppose Arcadia uses 1 million hours of labor per week to produce corn and 3 million hours per week to produce jeans , while Dolorium uses 3million hours of labor per week to produce corn and 1 million hours per week to produce jeans . Consequently , Arcadia produces & million bushels ofcorn and 48 million pairs of jeans , and Dolorium produces 15 million bushels of corn and 20 million pairs of jeans . Assume there are no other countrieswilling to trade goods , 50 , in the absence of trade between these two countries , each country consumes the amount of corn and jeans it produces .Arcadia’s opportunity cost of producing 1 bushel of corn is- of jeans , and Dolorium’s opportunity cost of producing 1 bushel of corn is- of jeans . Therefore ,- has a comparative advantage in the production of corn , and*- has a comparativeadvantage in the production of jeans .Suppose that each country completely specializes in the production of the good in which it has a comparative advantage , producing only that good . Inthis !s case , the country that produces carn will produce*\million bushels per week , and the country that produces jeans will produce*\million pairs per week .WET`@ )M
