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3 . Specialization and trade A country may specialize in producing a good that it can produce at a lower opportunity cost than its trading partners. Because of this comparative advantage, countries benefit when they specialize and trade with each other. The following graphs show the production possibilities curves (PPCs) for Candonia and Desonia. Both countries produce potatoes and coffee, each initially (that is, before specialization and trade) producing 24 million kilograms of potatoes and 12 million kilograms of coffee, as indicated by the grey stars marked with the letter A. (? Candonia Desonia 64 64 58 PPC 40 COFFEE (Millions of kilograms) 32 COFFEE (Millions of kilograms) 24 PPC 16 A CO CO O 0 0 16 24 32 40 48 56 64 16 24 32 40 48 56 64 POTATOES (Millions of kilograms) POTATOES (Millions of kilograms) Candonia has a comparative advantage in producing potatoes , while Desonia has a comparative advantage in producing neither potatoes nor coffee * . Suppose that Candonia and Desonia specialize in producing the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of 48 million kilograms of coffee and 48 million kilograms of potatoes.Candonia 84 56 Consumption After Trade 48 PPC 40 COFFEE (Millions of kilograms) 32 24 16 4 16 24 32 40 48 56 84 POTATOES (Millions of kilograms) The following graph shows the same PPC for Desonia as before, as well as its initial consumption at point A.As you did for Candonia, place a black point (plus symbol) on the following graph to indicate Desonia's consumption after trade. Desonia 34 Consumption After Trade 48 40 COFFEE (Millions of kilograms) 32 24 PPC 16 A 8 16 24 32 40 48 56 64 POTATOES (Millions of kilograms) True or False: Without engaging in international trade, Candonia and Desonia would not have been able to consume at the after-trade consumption bundles. (Hint: In answering this question, you may wish to refer to your previous answers.) O True O False