Table 13.2 shows the production possibilities curves for Troy and Sparta. Prior to specialization and trade, Troy is producing combination B, and Sparta is producing combination
D.
Table 13.2
a) What is the total output of the two countries for both products?
b) If each country were to specialize in the product in which it has a comparative advantage, what will be the total output of the two countries for both products?
c) Suppose Troy and Sparta engage in trade. Can world output of both goods increase?
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