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 Maldonia and Desonia. Both countries produce grain and sugar, each initially (i.e., before specialization and trade) producing 18 million pounds of grain and 9 million pounds of sugar, as indicated by the grey stars marked with the letter A. Maldonia has a comparative advantage in the production of (GRAIN, SUGAR, NEITHER GRAIN OR SUGAR, BOTH GRAIN AND SUGAR) , while Desonia has a comparative advantage in the production of (GRAIN, SUGAR, NEITHER GRAIN OR SUGAR, BOTH GRAIN AND SUGAR) . Suppose that Maldonia 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 grain and ____________ million pounds of sugar. Suppose that Maldonia 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 18 million pounds of grain for 18 million pounds of sugar. This ratio of goods is known as the price of trade between Maldonia and Desonia. True or False: Without engaging in international trade, Maldonia and Desonia would not have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.)True False AutoSaveOffDocument1 - WordO SearchWilliams, LaToya困FileHomeInsertDesignLayoutReferencesMailingsReviewViewHelpFoxit PDFA ShareP CommentsO Find -X CutB Copy-= = AL TAaBbCcDc AaBbCcDc AaBbC AaBbCcC AaB1 Normal 1 No Spac. Heading 1Calibri (Body) v 11 - A A" Aa- AReplacePasteDictateS Format PainterBIU v ab x, x A - Iv A vHeading 2TitleA SelectClipboardFontParagraphStylesEditingVoiceDesonia a beforevel it conmtinattAAs you did for Maldonia, place a black point (plus symbol) on the following graph to indicate Desonia's consumption after trade.DesoniaConsumption After TradeGRAIN (Mlong of pounds)9:58 AM11/3/2021Page 1 of 1O wordsD Focus100%9:58 AMHome...NC-R.Inbox ...НСНВ...Order .Clinic...Workf...A A3f36...G Adaf5.COPY.Mind..Docu.11/3/2021SUGAR (Mdions e| | 1 AutoSaveOffDocument1 - WordO SearchWilliams, LaToya困FileHomeInsertDesignLayoutReferencesMailingsReviewViewHelpFoxit PDFA ShareP CommentsO Find -X CutB CopyAaBbCcDc AaBbCcDc AaBbC AaBbCcC AaBI No Spac. Heading 1Calibri (Body) v 11 - A A Aa- AReplaceA Select vPasteBIU v ab x, x A Iv A vEEE EvI NormalHeading 2DictateTitleS Format PainterClipboardFontParagraphStylesEditingVoicetrade between Maldonia and DesoniaThe following graph shows the same for Naidonie as before, as well as es val consumpeon at pont A Place a biack point (alus symboo on chegraoh to indicate Maldona's consumeton after tradeNote: Dashed droo lines will automatically extend to both aves.MaidoniaCoumpan Atar TraGRAN Ms of poundThe following grach shows the same PPF for Desonia as before, as well as its initial consumption at point A9:51 AM11/3/2021Page 1 of 1O wordsO Focus100%9:51 AMHome..NC-R.Inbox ...HCHB..Order .Clinic...Workf..A A3f36.G Adaf5.COPY.Mind...Docu.11/3/2021| | 1

Question

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 Maldonia and Desonia. Both countries produce grain and sugar, each initially (i.e., before specialization and trade) producing 18 million pounds of grain and 9 million pounds of sugar, as indicated by the grey stars marked with the letter A. Maldonia has a comparative advantage in the production of (GRAIN, SUGAR, NEITHER GRAIN OR SUGAR, BOTH GRAIN AND SUGAR) , while Desonia has a comparative advantage in the production of (GRAIN, SUGAR, NEITHER GRAIN OR SUGAR, BOTH GRAIN AND SUGAR) . Suppose that Maldonia 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 grain and ____________ million pounds of sugar. Suppose that Maldonia 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 18 million pounds of grain for 18 million pounds of sugar. This ratio of goods is known as the price of trade between Maldonia and Desonia. True or False: Without engaging in international trade, Maldonia and Desonia would not have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.)True False AutoSaveOffDocument1 - WordO SearchWilliams, LaToya困FileHomeInsertDesignLayoutReferencesMailingsReviewViewHelpFoxit PDFA ShareP CommentsO Find -X CutB Copy-= = AL TAaBbCcDc AaBbCcDc AaBbC AaBbCcC AaB1 Normal 1 No Spac. Heading 1Calibri (Body) v 11 - A A" Aa- AReplacePasteDictateS Format PainterBIU v ab x, x A - Iv A vHeading 2TitleA SelectClipboardFontParagraphStylesEditingVoiceDesonia a beforevel it conmtinattAAs you did for Maldonia, place a black point (plus symbol) on the following graph to indicate Desonia's consumption after trade.DesoniaConsumption After TradeGRAIN (Mlong of pounds)9:58 AM11/3/2021Page 1 of 1O wordsD Focus100%9:58 AMHome...NC-R.Inbox ...НСНВ...Order .Clinic...Workf...A A3f36...G Adaf5.COPY.Mind..Docu.11/3/2021SUGAR (Mdions e|< > | 1> AutoSaveOffDocument1 - WordO SearchWilliams, LaToya困FileHomeInsertDesignLayoutReferencesMailingsReviewViewHelpFoxit PDFA ShareP CommentsO Find -X CutB CopyAaBbCcDc AaBbCcDc AaBbC AaBbCcC AaBI No Spac. Heading 1Calibri (Body) v 11 - A A Aa- AReplaceA Select vPasteBIU v ab x, x A Iv A vEEE EvI NormalHeading 2DictateTitleS Format PainterClipboardFontParagraphStylesEditingVoicetrade between Maldonia and DesoniaThe following graph shows the same for Naidonie as before, as well as es val consumpeon at pont A Place a biack point (alus symboo on chegraoh to indicate Maldona's consumeton after tradeNote: Dashed droo lines will automatically extend to both aves.MaidoniaCoumpan Atar TraGRAN Ms of poundThe following grach shows the same PPF for Desonia as before, as well as its initial consumption at point A9:51 AM11/3/2021Page 1 of 1O wordsO Focus100%9:51 AMHome..NC-R.Inbox ...HCHB..Order .Clinic...Workf..A A3f36.G Adaf5.COPY.Mind...Docu.11/3/2021|< > | 1>

Accepted Answer

International trade is that the exchange of products and services between countries. mercantilism…