The production possibilities frontiers in the figure to the


The production possibilities frontiers in the figure to the right show how many bananas and coconuts you? (Y) and your neighbor? (N) can consume without trade. Suppose you are initially consuming 10 bananas and 4 coconuts and your neighbor is initially consuming 10 bananas and 4 coconuts. ?Now, suppose you and your neighbor specialize by each only producing the good for which you have a comparative advantage. You give your neighbor half of your production for half of what he produces. ?(Enter all responses as? integers.) If you trade with your? neighbor, then you will have (?) additional? coconut(s) after the trade and (?) additional? banana(s). At the same? time, your neighbor will be able to consume (?) additional? banana(s) and will be (worse off/better off) as a result of trade.

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Business Economics: The production possibilities frontiers in the figure to the
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