Suppose that two countries, Machineland and Farmland, have the following production possibility curves.

a. Explain how these two countries can move from points A and C, where they currently are, to points B and D.
b. If possible, state by how much total production for the two countries has risen.
c. If you were a trader, how much of the gains from trade would you deserve for discovering this trade?
d. If there were economies of scale in the production of both goods, how would your analysis change?

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200 200 F eMso, 150 100は (20, 1001 100 Di50, 50) C150, 10 0 0 100 200 Food 100 200 Food Machineland Farmland