(Solved): Candonia has a comparative advantage in the production of While Desonia hiss a comparative advantag ...

Candonia has a comparative advantage in the production of While Desonia hiss a comparative advantage in the production of - Suppose that Candonia and Desonla spicialize in the production of the goods in which each has a comparative advantage After spetialization, the two countries can produce a total of million pounds of grain and millien pounds of sugar. Suppose that Candonia and Desonia agree to trade. Each country focuses its resources on producing only the good in which it has a comparative odvantage. The countries decide to exchange 12 milizon pounds of crain for 12 milion pounds of sugar, This ratio of goids is known as the price of Tive Telief