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Sagot :
After trade, Alabama will eat 10 bushels of peaches and 35 bushels of tomatoes if it imports 10 bushels of peaches and exports 40 bushels of tomatoes.
According to the graph above, Alabama will have to give up 15 bushels of peaches in order to produce 75 bushels of tomatoes since it will need to use all of its resources. In Alabama, the opportunity cost of growing tomatoes will therefore be 15/75 = 0.2 bushels of peaches.
The graph above also shows that in order to produce 90 bushels of tomatoes, Georgia must use all of its resources, which means that 30 bushels of peaches must be given up. As a result, Georgia's opportunity cost of growing tomatoes will be 30/90 = 0.33 bushels of peaches.
He will focus in tomatoes and produce 75 bushels of tomatoes because Alabama has a lower potential cost for producing tomatoes. He will export tomatoes as a result.
In this instance, Alabama imported 10 bushels of peaches and exported 40 bushels of tomatoes.
As a result, after the trade, he consumed 10 bushels of peaches and 35 bushels of tomatoes, or 75 minus 40.
According to Alabama's Production Possibilities Frontier (PPF), if it can produce 10 bushels of peaches, it can generate a maximum of 25 bushels of tomatoes. As a result, under autarky, it will eat 25 bushels of tomatoes and 10 bushels of peaches (Point A).
As a result of trade, Alabama will receive 10 bushels (35 - 25) of tomatoes.
In contrast to autarky, this Trade permits Alabama to produce 10 bushels of tomatoes.
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