For case II,let the international price be 1 bottle = 1 bushel.Derive South Dakota's "trading possibilities curve."

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With the international price being 1 bottle = 1 bushel, South Dakota's trading possibilities curve would be a straight line with a slope of -1, passing through the intercepts of 20,000 bottles and 40,000 bushels on both axes. Option C represents this straight line. The best choice would be to specialize in producing the good in which South Dakota has a comparative advantage, which in this case is wheat (bushels). By specializing in wheat production, South Dakota can trade a portion of its wheat for bottles with other countries and consume at a point on the trading possibilities curve that gives it the highest level of utility. The specific point of consumption would depend on South Dakota's preferences for bottles and wheat.

For Case II,let the International Price Be 1 Bottle =