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Question: The following table represents the endpoints of a production possibilities table:  a. Who has the...

Show transcribed image text The following table represents the endpoints of a production possibilities table: a. Who has the absolute advantage in cognac? In olives? b. What is the opportunity cost of one unit of olives in each country? For France, what does this mean? c. Who has the comparative advantage in cognac? In olives? d. Suppose each person specializes in the good they have a comparative advantage in. How much of each good would they produce? What is total production? Suppose that before specialization, they produced (and consumed) the following: e. What is total production before specialization? f. What are the gains to trade?

The following table represents the endpoints of a production possibilities table: a. Who has the absolute advantage in cognac? In olives? b. What is the opportunity cost of one unit of olives in each country? For France, what does this mean? c. Who has the comparative advantage in cognac? In olives? d. Suppose each person specializes in the good they have a comparative advantage in. How much of each good would they produce? What is total production? Suppose that before specialization, they produced (and consumed) the following: e. What is total production before specialization? f. What are the gains to trade?