The production possibilities frontiers in the figure to the right show how many bananas and coconuts you (Y) and your
neighbor (N) can consume without trade. Suppose you are initially consuming 6 bananas and 6 coconuts and your
neighbor is initially consuming 3 bananas and 9 coconuts.
Now, suppose you and your neighbor specialize by each only producing the good for which you have a comparative
advantage.
You give your neighbor half of your production for half of what he produces. (Enter all responses as integers.)
If you trade with your neighbor, then you will have 8 additional coconut(s) after the trade and 10 additional banana(s)
additional banana(s) and will be
as a result of
the same time, your neighbor will be able to consume
trade.