5% MINDTAP 59 PM 3. Gains from trade island countries called Arcada and Dalorium

Question

5% MINDTAP 59 PM 3. Gains from trade island countries called Arcada and Dalorium. They each have 4 million labor hours available per month that they produce ne, jeans, or acontination of both. The following table shows the amount offy·orjeans that can be pewhced uskollorofldw Rye Country to produce jeans Arcadia wses 1 to produce rye rve and 48 mdon pairs of leans, and Dolorum produces 15 milon bushels of and 20 mason pairs of jeans.- there are no other courees wiling to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of rye and eans it produces Suppose that eachuty completely specialies in the preduction of the good in ich i has omparative adeproduing oly that good nilon bushels per month, and the country that produce ear will produce

Explanation / Answer

Can answer only four questions according to chegg policy. Please send other parts as separate question

=2 because=(16/8)

=5.8(29/5)

Arcadia has comparative advantage in Rye due to being low cost producer(cost=2only)

Dolorium has comparative advantage in jeans(0.17from 5/9, compared to 0.5 of Dolorium {16/8])

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