At Westonci.ca, we connect you with the answers you need, thanks to our active and informed community. Ask your questions and receive accurate answers from professionals with extensive experience in various fields on our platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.
Sagot :
A) Note that based on the information given, Candonia has a comparative advantage in the production of Sugar, while Desonia has a comparative advantage in the production of Grain.
B) Suppose that Candonia and Lamponia specialize in the production of goods in which each has a comparative advantage. After specialization, the two countries can produce a total of 48 million pounds of grain and 48 million pounds of sugar.
What is comparative advantage?
In an economic model, agents have a comparative advantage over others if they can manufacture that good at a lower relative opportunity cost or autarky price, i.e. at a significantly smaller marginal cost prior to the trade.
The capacity of an economy to produce a certain item or service with a lower opportunity cost than its trade counterparts is referred to as comparative advantage. The concept of comparative advantage is used to demonstrate why organizations, governments, or people profit from the trade.
In the above example, Candonia's opportunity cost is 32 million pounds of grain, while Desonia's is 24 million pounds of sugar.
Learn mroe about Specialization:
https://brainly.com/question/17636531
#SPJ1

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.