the attached econ28, can you double check to see if the answer is correct. Show
Next, on the attached econ29, can you help me place where the symbol goes on each graph  Transcribed Image Text: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 Candonia and Lamponia. Both countries produce lemons and tea, each initially (i.e., before specialization and trade) producing 6 million pounds of lemons and 3 million pounds of tea, as indicated by the grey stars marked with the letter A. Candonia Lamponia 16 16 14 14 12 PPF PPF A. 2 4 8 10 12 14 16 2 4 8 10 12 14 16 LEMONS (Millions of pounds) LEMONS (Millions of pounds) Candonia has a comparative advantage in the production of lemons while Lamponia has a comparative advantage in the production of tea . 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 12 million pounds of lemons and 12 million pounds of tea. EA (Millions of pounds) (spunod jo SUQULM) va Transcribed Image Text:Suppose that Candonia and Lamponia 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 4 million pounds of lemons for 4 million pounds of tea. This ratio of goods is known as the price of trade between Candonia and Lamponia. The following graph shows the same PPF for Candonia as before, as well as its initial consumption at point A. Place a black point (plus symbol) on the graph to indicate Candonia's consumption after trade. Note: Dashed drop lines will automatically extend to both axes. ? Candonia 16 14 Consumption After Trade 12 10 PPF 2 2 6 4 8 10 12 14 16 LEMONS (Millions of pounds) The following graph shows the same PPF for Lamponia as before, as well as its initial consumption at point A. As you did for Candonia, place a black point (plus symbol) on the following graph to indicate Lamponia's consumption after trade. (? Lamponia 16 14 Consumption After Trade 12 PPF 10 2 2 8 10 12 14 16 LEMONS (Millions of pounds) TE A (Millions of pounds) TE A (Millions of pounds)
When a country has a comparative advantage in production of a good?In economic terms, a country has a comparative advantage when it can produce at a lower opportunity cost than that of trade partners. While a country cannot have a comparative advantage in all goods and services, it can have an absolute advantage in producing all goods.
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?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.
What does it mean to have a comparative advantage in production?A person has a comparative advantage at producing something if he can produce it at lower cost than anyone else. Having a comparative advantage is not the same as being the best at something.
Why countries develop comparative advantage in the production of a product?A country with comparative advantage will focus its capital, labor, and natural resources on producing goods and services with lower opportunity costs and higher profit margins. David Ricardo, a 19th-century economist, developed the concept of comparative advantage to end tariffs on wheat imports in England.
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When a country has a comparative advantage in the production of a good, it means that it can produce
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