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1. Specialization and trade When a country specializes in the production of a good, this means that It can produce this good at a lower opportunity cost than its trading partner, Because of this comparative advantage, both countries benefit when they specialize and trade with each other. The following graphs show the production possibilities frontiers [PPFS) for Candonia and Lamponka. Both countries produce potatoes and tea, each initially (i-e., before specialization and trade) producing 12 million pounds of potatoes and 6 million pounds of tea, as indicated by the grey stars marked with the letter A. (?) (?) Candonia Lamponia 12 PPF 24 TEA (Millions of pounds) TEA (Millions of pounds] 12 PPF 1 12 4 16 30 24 12 POTATOES [Millions of pounds) POTATOES (Millions of pounds) Candonia has a comparative advantage in the production of while Lamponia has a comparative advantage in the production of . Suppose that Candonia and Lamponia specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of million pounds of tea and million pounds of potatoes