Please help

Troy Canvas @ Drown Summary & A... @ New Tab @ Factor a polynomial or... (@ gof a^4b^5, a47b45 -... @ New Tab Ce rd Learn ims.au.af.edu CENGAGE | MINDTAP Homework (Ch 03) 4. Specialization and trade When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFs) for Freedonia and Desonia. Both countries produce lemons and coffee, each initially (i.e., before specialization and trade) producing 24 million pounds of lemons and 12 million pounds of coffee, as indicated by the grey stars marked with the letter A. (? Freedonia Desonia 84 COFFEE (Millions of pounds) COFFEE (Millions of pounds) PPF 18 24 32 40 48 18 24 32 40 48 50 LEMONS (Millions of pounds) LEMONS (Millions of pounds) Freedonia has a comparative advantage in the production of , while Desonia has a comparative advantage in the production of . Suppose that Freedonia and Desonia 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 lemons and million pounds of coffee. Suppose that Freedonia and Desonia agree to trade. Each country focuses its resources on producing only the good in which it has a comparative advantage. The countries decide to exchange 16 million pounds of lemons for 16 million pounds of coffee. This ratio of goods is known as the price of trade between Freedonia and Desonia