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Business, 16.07.2019 19:40 paulagarza

The accompanying production possibilities frontiers (ppf) represent hypothetical levels of production for honduras and brazil. assume the two countries are initially producing and consuming in autarky at point a on each of their ppfs. suppose these countries decide to trade. each country will specialize in the production of the good for which it has a comparative advantage. a. what will each country produce? honduras will produce steel and brazil bananas. brazil will produce both goods. honduras will produce both goods. honduras will produce bananas and brazil steel. b. suppose each country specializes in the production of the good for which it has a comparative advantage, and they trade at a price of of 4,000 tons of steel for 6,000 tons of bananas. place the points labeled "post trade consumption" to show the amounts of bananas and steel each country will have to consume after they trade.

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