CountryJeansCorn Felicidad832Bellissima1224Felicidad's opportunity cost of producing 1 pair of jeans is (1/2 , 1/4, 2, 4) of corn, and Bellissima's opportunity cost of producing 1 pair of jeans is( 1/2 , 1/4, 2, 4) of corn. Therefore, (FELICIDADS, BELLISSIMA) has a comparative advantage in the production of jeans, (FELICIDADS, BELLISSIMA) and has a comparative advantage in the production of corn. 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 jeans will produce_______________million pairs per week, and the country that produces corn will produce____________million bushels per week. AutoSaveDocument1 - WordO SearchWilliams, LaToya困FileHomeInsertDesignLayoutReferencesMailingsReviewViewHelpFoxit PDFA ShareP CommentsX Cut-= = AL TO Find -AaBbCcDc AaBbCcDc AaBbC AaBbCcC AaBI NormalCalibri (Body) v 11 - A A Aa v AoLE CopyReplacePasteDictateS Format PainterBIU v ab x, x A - ev A vE== E-I No Spac. Heading 1Heading 2TitleA SelectClipboardFontParagraphStylesEditingVoiceis trading food and cars with Japan. The United States has better land so they can produce more food thanJapan per month and they each produce the same number of cars. Because of the comparative advantageJapan has on car production, it makes more sense for them to produce only cars and export their surplusto the U.S., while the U.S. produces only food and exports their surplus to Japan. This works for bothcountries because Japan is losing less food than the United States would if they chose to specialize andtrade only cars. Basically, because the United States can produce more food, they are gaining more carsby not doing both and Japan is gaining more food from focusing on only cars (Mankiw, 2021).When the two countries did not specialize, the total production of Jeans was 36 million pairs per week, and the total production of corm was 104 millionbushels per week. Because of specialization, the total production of Jeans has increased by million pairs per week, and the total production ofcorn has increased by million bushels per week.Because the two countries produce more jeans and more corn under specialization, each country is able to gain from trade.Calculate the gains from trade-that is, the amoune by which each country has increased its consumotion of each good relative to the first row of thetable. In the folowing table, enter this difference in the bexes across the last row (marked "Increase in Consumption").FelicidadBellissimaJeansComJeansCorn(MIlions of pairs) (Millons of bushels) (Millions of pairs) (Millions of bushels)without TradeProduction243212Consumption3212with TradeProductionTrade actionConsumptionGains from TradeIncrease in Consumption10:52 AM11/3/2021Page 3 of 3159 wordsLE Display Settings D Focus100%10:52 AMHome.MISInbox ...HCHB...Order .Clinic...Workf.2 Acedó..G Adaf5.COPY.Mind...Docu.11/3/2021| « | | 1

Question

CountryJeansCorn  Felicidad832Bellissima1224Felicidad's opportunity cost of producing 1 pair of jeans is (1/2 , 1/4, 2, 4)   of corn, and Bellissima's opportunity cost of producing 1 pair of jeans is(  1/2 , 1/4, 2, 4)  of corn. Therefore,  (FELICIDADS, BELLISSIMA)  has a comparative advantage in the production of jeans, (FELICIDADS, BELLISSIMA) and has a comparative advantage in the production of corn. 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 jeans will produce_______________million pairs per week, and the country that produces corn will produce____________million bushels per week. AutoSaveDocument1 - WordO SearchWilliams, LaToya困FileHomeInsertDesignLayoutReferencesMailingsReviewViewHelpFoxit PDFA ShareP CommentsX Cut-= = AL TO Find -AaBbCcDc AaBbCcDc AaBbC AaBbCcC AaBI NormalCalibri (Body) v 11 - A A Aa v AoLE CopyReplacePasteDictateS Format PainterBIU v ab x, x A - ev A vE== E-I No Spac. Heading 1Heading 2TitleA SelectClipboardFontParagraphStylesEditingVoiceis trading food and cars with Japan. The United States has better land so they can produce more food thanJapan per month and they each produce the same number of cars. Because of the comparative advantageJapan has on car production, it makes more sense for them to produce only cars and export their surplusto the U.S., while the U.S. produces only food and exports their surplus to Japan. This works for bothcountries because Japan is losing less food than the United States would if they chose to specialize andtrade only cars. Basically, because the United States can produce more food, they are gaining more carsby not doing both and Japan is gaining more food from focusing on only cars (Mankiw, 2021).When the two countries did not specialize, the total production of Jeans was 36 million pairs per week, and the total production of corm was 104 millionbushels per week. Because of specialization, the total production of Jeans has increased by million pairs per week, and the total production ofcorn has increased by million bushels per week.Because the two countries produce more jeans and more corn under specialization, each country is able to gain from trade.Calculate the gains from trade-that is, the amoune by which each country has increased its consumotion of each good relative to the first row of thetable. In the folowing table, enter this difference in the bexes across the last row (marked &#34;Increase in Consumption&#34;).FelicidadBellissimaJeansComJeansCorn(MIlions of pairs) (Millons of bushels) (Millions of pairs) (Millions of bushels)without TradeProduction243212Consumption3212with TradeProductionTrade actionConsumptionGains from TradeIncrease in Consumption10:52 AM11/3/2021Page 3 of 3159 wordsLE Display Settings D Focus100%10:52 AMHome.MISInbox ...HCHB...Order .Clinic...Workf.2 Acedó..G Adaf5.COPY.Mind...Docu.11/3/2021| « | > | 1>

Accepted Answer

Given,

Jeans

Corn

Felicidad

8

32

Bellissima

12

24