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Unformatted text preview: between countries.) c) Show how trade between the two countries can enable both to consume levels of cotton and wheat outside their respective production possibilities frontiers. Feel free to use an example. 2. Suppose instead that yields per acre were given by the following table: Yields Per Acre New Zealand Australia Wheat 6 bushels 1 bushels Cotton 6 bales 3 bales a) Graph the new production possibilities frontier (PPF) for each country. b) Which country has the comparative advantage in wheat production? In cotton production? c) Can the countries still gain from trade? If yes, please provide an example. If not, explain why....
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