Assume that the countries of Minami Iwo Jima¹ (Minami for simplicity) and Stormwind² ca I produce two goods: fishy strawberries (Scientists have been experimenting with so-called "anti- freeze genes" found in cold water fish like Sea Flounder and Arctic Char. When implanted into fruits and vegetables like potatoes, tomatoes and strawberries, the gene acts to makes the plant in question more resistant to freezing in bad weather) and golden blueberries (this is from my imagination). The table below describes the production possibilities: Minami Stormwind Fishy Strawberries 20 20 Golden Blueberries 70 50 Questions: 1. Given the above Table, explain which country has a comparative advantage in the production of what good (make sure to clearly explain your answer, do not just say country x) 2. Assume that in autarky Minami is producing 9 units of strawberries and 38.5 of blueberries. Stormwind is producing 8 units of strawberries and 30 of blueberries. Illustrate the gains from trade (if any)

Assume that the countries of Minami Iwo Jima¹ (Minami for simplicity) and Stormwind² ca I produce two goods: fishy strawberries (Scientists have been experimenting with so-called "anti- freeze genes" found in cold water fish like Sea Flounder and Arctic Char. When implanted into fruits and vegetables like potatoes, tomatoes and strawberries, the gene acts to makes the plant in question more resistant to freezing in bad weather) and golden blueberries (this is from my imagination). The table below describes the production possibilities: Minami Stormwind Fishy Strawberries 20 20 Golden Blueberries 70 50 Questions: 1. Given the above Table, explain which country has a comparative advantage in the production of what good (make sure to clearly explain your answer, do not just say country x) 2. Assume that in autarky Minami is producing 9 units of strawberries and 38.5 of blueberries. Stormwind is producing 8 units of strawberries and 30 of blueberries. Illustrate the gains from trade (if any)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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