Yosemite has a comparative advantage in the production of ◻ – while Denali has a comparative advantage in the production of ◻ . Suppose that Yosemite and Denali 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 corn and ◻ million pounds of basil.
Homework (Ch 03)
The following graph shows the same PPF for Denali as before, as well as its initial consumption at point A.
As wou did for Yosemite, place a black point (symbol) on the following graph to indicate Denal’s consumption after trade.
Consumption After Trade
True or False: Without engaging in international trade, Yosemite and Denali would not have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.)
True
False
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