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Advocard [28]
3 years ago
15

Candonia has a comparative advantage in the production of , while lamponia has a comparative advantage in the production of . Su

ppose that candonia and lamponia 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 sugar and million pounds of lemons.

Business
1 answer:
Ksju [112]3 years ago
8 0

Answer:

Candonia has a comparative advantage in the production of <u>LEMONS</u>, while Lamponia has a comparative advantage in the production of <u>COFFEE</u>. Suppose that Candonia and Lamponia specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of <u>36</u> million pounds of coffee and <u>36</u> million pounds of lemons.

Explanation:

Since a lot of information was missing, I looked it up and found the attached graphs. The graphs referred to production of coffee and lemons, but I guess they are similar questions.

For every pound of lemons that Candonia produces, it will not be able to produce ¹/₂ pounds of coffee (opportunity cost of producing lemons instead of coffee).

For every pound of coffee that Lamponia produces, it will not be able to produce 1¹/₂ pounds of lemons (opportunity cost of producing coffee instead of lemons).

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