Suppose there exist two imaginary countries, Everglades and Yosemite. Their labor forces are each capable of supplying four million hours per weekthat can be used to produce chinos, pistachios, or some combination of the two. The following table shows the amount of chinos or pistachios that canbe produced by one hour of labor.CountryEvergladesYosemiteSuppose that initially Yosemite uses 1 million hours of labor per week to produce chinos and 3 million hours per week to produce pistachios, whileEverglades uses 3 million hours of labor per week to produce chinos and 1 million hours per week to produce pistachios. As a result, Evergladesproduces 15 million pairs of chinos and 20 million pounds of pistachios, and Yosemite produces 8 million pairs of chinos and 48 million pounds ofpistachios. Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two countries, each countryconsumes the amount of chinos and pistachios it produces.Everglades's opportunity cost of producing 1 pair of chinos ischinos isof pistachios. Therefore,ChinosPistachios(Pairs per hour of labor) (Pounds per hour of labor)520816Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. Inthis case, the country that produces chinos will produce million pairs per week, and the country that produces pistachios will produce| millian navında nar waakIn the following table, enter each country's production decision on the third row of the table (merked "Production")Suppose the country that produces chinos trades 18 million pairs of chinos to the other country in exchange for 54 million pounds of pistachiosIn the following table, select the amount of each good that each country exports and imports in the boxes across the row marked "Trade Action," andanter each country's final consumption of each good on the line marked "Consumption."has a comparative advantage in the production of pistachios.When the two countries did not specialize, the total production of chinos was 23 million pairs per week, and the total production of pistachios was 60million pounds per week. Because of specialization, the total production of chinos has increased by million pairs per week, and the totalproduction of pistachios has increased bymillion pounds per week.Without TradeProductionConsumptionBecause the two countries produce more chines and more pistachios under specialization, each country is able to gain from trade.With TradeCalculate the gains from trade-that is, the amount by which each country has increased its consumption of each good relative to the first row of thetable. In the following table, enter this difference in the boxes across the last row (marked "Increase in Consumption").ProductionTrade actionof pistachios, and Yosemite's opportunity cost of producing 1 pair ofhas a comparative advantage in the production of chinos, andConsumptionGains from TradeIncrease in ConsumptionEverglades1515ChinosPistachiosChinos(Millions of pairs) (Millions of pounds) (Millions of pairs)2020YosemitePistachios(Millions of pounds)48

The production rate of the two producers are given as follows. AlmondsChinosEverglades520Yosemite816

Suppose there exist two imaginary countries, Everglades and Yosemite. Their labor forces are each capable of supplying four million hours per week that can be used to produce chinos, pistachios, or some combination of the two. The following table shows the amount of chinos or pistachios that can be produced by one hour of labor. Country Everglades Yosemite Chinos Pistachios (Pairs per hour of labor) (Pounds per hour of labor) 20 16 Suppose that initially Yosemite uses 1 million hours of labor per week to produce chinos and 3 million hours per week to produce pistachios, while Everglades uses 3 million hours of labor per week to produce chinos and 1 million hours per week to produce pistachios. As a result, Everglades produces 15 million pairs of chinos and 20 million pounds of pistachios, and Yosemite produces 8 million pairs of chinos and 48 million pounds of pistachios. Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two countries, each country consumes the amount of chinos and pistachios it produces. Everglades's opportunity cost of producing 1 pair of chinos is chinos is of pistachios. Therefore, has a comparative advantage in the production of pistachios. Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces chinos will produce million pairs per week, and the country that produces pistachios will produce millan accade nas wel In the following table, enter each country's production decision on the third row of the table (marked "Production"). Suppose the country that produces chinos trades 10 million pairs of chines to the other country in exchange for 54 million pounds of pistachios In the following table, select the amount of each good that each country exports and imports in the bones across the row marked "Trade Action, and anter each country's final consumption of each good on the he marted"Consumption Without Trade Production Consumption With Trade Production Trade action When the two countries did not specialize, the total production of chines was 23 million pairs per week, and the total production of pistachios was million pounds par Because of specialization, the total production of chinos has increased by production of pistachis has increased by [ Secause the two countries produce more chinos and more pistachios under specialization, each country is able to gain from trade of pistachios, and Yosemite's opportunity cost of producing 1 pair of has a comparative advantage in the production of chinos, and Calculate the gains from trade-that is the amount by which each country has increased its consumption of each good relative to the first row of the table. In the following table, enter this difference in the boves across the last row (marked "Increase in Consumption" Consumption Gains from Trade Increase in Consumption Everglades 15 15 Chines Pistachios Chinos Pistachios (Millions of pairs) (Millions of pounds) (Millions of pairs) (Millions of pounds) A Yosemite