Both islands specialize exclusively in the product for which they have a comparative advantage. You have agreed to give 350 coco

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2 years ago

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Both islands specialize exclusively in the product for which they have a comparative advantage. You have agreed to give 350 coco

nuts to the other island in exchange for 1,300 fish. After the trade the other island has a total of ______ coconuts and ______ fish.

Business

2 answers:

timurjin [86] · Answer 1 · 2023-07-22T22:03:35+03:00

After the trade the other island has a total of 150 coconuts and 1300 fish.

<h3>What do you mean by the comparative advantage?</h3>

Comparative advantage refers to the maximization of the efficiency of the economy and its well being by focusing on the production of those resources, which country can produce and exports them in the exchange of those goods, which a country does not produce.

One can have the comparative advantage at production if it could produce the goods at lower cost as compare to the others.

Here, both the islands focus only on the making of the thing they're best at doing.

Learn more about the comparative advantage here:-

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DaniilM [7] · Answer 2 · 2023-07-23T00:12:18+03:00

Both islands specialize exclusively in the product for which they have a comparative advantage. After the trade, the other island has a total of 150 coconuts and 1300 fish. This is further explained below.

<h3>What is trade?</h3>

Generally, trade is simply defined as the exchange of commodities and services.

In conclusion, Both islands focus only on making the thing they're best at doing. Thanks to the exchange, the other island is now stocked with 1300 fish and 150 coconuts.