Question

Candonia has a comparative advantage in the production of tea , while desonia has a comparative advantage in the production of potatoes . suppose that candonia 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 24 million pounds of potatoes and 18 million pounds of tea. - -g

Answer 1

Answer:

Tea : Potato 48 : 48.

Explanation:

• Both the nation has a comparative advantage by the production of their specialized products such as the tea and potatoes hence the goods in which each has a comparative advantage between the two nation has to be sold and gain comparative advantage in terms of cost.