Refer to the graphs. These production possibilities curves

Question

Quizplus · Accepted Answer

The graphs demonstrate that there can be gains from specialization and trade between the two nations, as both countries can produce more of both goods by specializing in the production of the good in which they have a comparative advantage and trading with the other country. This is indicated by the fact that the combined production possibilities curves are outside the individual production possibilities curves for each country.

Refer to the Graphs. These Production Possibilities Curves