Answer
Congaree's opportunity cost of producing 1 pound of pistachios is 4 pairs Correct of chinos, and Yosemite's opportunity cost of producing 1 pound of pistachios is 2 pairs Correct of chinos. Therefore, Yosemite Correct has a comparative advantage in the production of pistachios, and Congaree Correct has a comparative advantage in the production of chinos.
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces pistachios will produce 32 million pounds per day, and the country that produces chinos will produce 80 million pairs per day.
When the two countries did not specialize, the total production of pistachios was 23 million pounds per day, and the total production of chinos was 68 million pairs per day. Because of specialization, the total production of pistachios has increased by 23 million pounds per day, and the total production of chinos has increased by 6 million pairs per day.
15, 20,8,48
15,20,8,48
0,80,32,0
imports 18, exports 54, exports 18, imports 54
18,26,14,54
3,6,6,6