Question: Using the following exhibit that I attached below, explain how the U.S. can gain in trade even though it has absolute advantage in both shoes

 Using the following exhibit that I attached below, explain how the

Using the following exhibit that I attached below, explain how the U.S. can gain in trade even though it has absolute advantage in both shoes and refrigerators. (The answer should include whether more product is available via specialization.) why should they specialize?

U.S. can gain in trade even though it has absolute advantage in

Shows possibities of Exhibit 3-7 Comparative Advantage with Production Possibility For what we can get- bruce, rabi Is The tables show several points along the production possibilities frontiers for each country, based on the numbers for what workers produce in Exhibit 3-6 and assuming 40 workers for each country, In the absence of trade, each country would most prefer point A, given its production possibilities. While a point like 8 provides more of both goods, in a world without trade, a choice like B is impossible. Through specialization and trade, a point like B becomes possible for both countries, showing that both countries can benefit from trade. 12.000 How many workers Output of Output of producing each good? shoes Refrigerators 10,000 40 to shoes, O to 10,000 pairs O refrigerators refrigerators 8.000 impossible 30 to shoes, 10 to 7,500 pairs 10,000 Shoes 6,000 B refrigerators refrigerators on inside this 20 to shoes, 20 to 5,000 pairs 20,000 4.000 possible sid refrigerators refrigerators 2.000 10 to shoes, 30 to 2,500 pairs 30,000 refrigerators refrigerators officeent not 0 to shoes, 40 to 0 pairs 40,000 20,000 40,000 refrigerators refrigerators Refrigerators (a) U.S. PPF (40 workers) 12,000 How many workers Output of Output of producing each good? shoes Refrigerators 10.000 40 to shoes, O to 8,000 pairs 0 refrigerators 8.000 refrigerators 30 to shoes, 10 to 6,090 pairs 2,500 Shoes 6.000 refrigerators refrigerators B 4,000 20 to shoes, 20 to 4,000 pairs 5,000 refrigerators refrigerators 2.000 10 to shoes, 30 to 2,000 pairs 7,500 refrigerators refrigerators 0 10,000 30,000 50,000 0 to shoes, 40 to 0 pairs 10,000 refrigerators Refrigerators refrigerators (b) Mexico PPF (40 workers) 3) If two countries are fairly similar and have workers of the same general productivity leve explain if there can be any economic gains from trade for them

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