Answer the question on the basis of the accompanying production possibilities tables for two countries, Latalia and Trombonia.

Latalia's production possibilities
A	B	C	D	E
Pork (Tons)	4	3	2	1	0
Beans (Tons)	0	5	10	15	20
Trombonia's production possibilities
A	B	C	D	E
Pork (Tons)	8	6	4	2	0
Beans (Tons)	0	6	12	18	24
If these two nations specialize on the basis of comparative advantage,

To determine which country should specialize in which good based on comparative advantage, we need to analyze the opportunity costs of producing each good in both countries.

### Latalia's Production Possibilities:
- **Pork (Tons):** 4, 3, 2, 1, 0
- **Beans (Tons):** 0, 5, 10, 15, 20

### Trombonia's Production Possibilities:
- **Pork (Tons):** 8, 6, 4, 2, 0
- **Beans (Tons):** 0, 6, 12, 18, 24

### Step 1: Calculate Opportunity Costs
The opportunity cost of producing one unit of a good is the amount of the other good that must be given up to produce it.

#### For Latalia:
To find the opportunity cost of pork in terms of beans:
- Moving from point E to D (0 pork to 1 pork): Lose 5 beans (20 to 15 beans)
  - Opportunity cost of 1 ton of pork = 5 beans
- Moving from point D to C (1 pork to 2 pork): Lose 5 beans (15 to 10 beans)
  - Opportunity cost of 1 ton of pork = 5 beans
- This pattern continues consistently, so the opportunity cost of 1 ton of pork in Latalia is **5 beans**.

To find the opportunity cost of beans in terms of pork:
- Moving from point A to B (4 pork to 3 pork): Gain 5 beans (0 to 5 beans)
  - Opportunity cost of 5 beans = 1 ton of pork
  - Opportunity cost of 1 bean = 1/5 ton of pork
- Thus, the opportunity cost of 1 ton of beans in Latalia is **1/5 ton of pork**.

#### For Trombonia:
To find the opportunity cost of pork in terms of beans:
- Moving from point E to D (0 pork to 2 pork): Lose 6 beans (24 to 18 beans)
  - Opportunity cost of 2 tons of pork = 6 beans
  - Opportunity cost of 1 ton of pork = 3 beans
- Moving from point D to C (2 pork to 4 pork): Lose 6 beans (18 to 12 beans)
  - Opportunity cost of 2 tons of pork = 6 beans
  - Opportunity cost of 1 ton of pork = 3 beans
- This pattern continues consistently, so the opportunity cost of 1 ton of pork in Trombonia is **3 beans**.

To find the opportunity cost of beans in terms of pork:
- Moving from point A to B (8 pork to 6 pork): Gain 6 beans (0 to 6 beans)
  - Opportunity cost of 6 beans = 2 tons of pork
  - Opportunity cost of 1 bean = 2/6 = 1/3 ton of pork
- Thus, the opportunity cost of 1 ton of beans in Trombonia is **1/3 ton of pork**.

### Step 2: Determine Comparative Advantage
- **Comparative advantage** is determined by who has the lower opportunity cost of producing a good.

**Latalia:**
- Opportunity cost of 1 ton of pork = 5 beans
- Opportunity cost of 1 ton of beans = 1/5 ton of pork

**Trombonia:**
- Opportunity cost of 1 ton of pork = 3 beans
- Opportunity cost of 1 ton of beans = 1/3 ton of pork

**Comparative Advantage:**
- **Latalia** has a lower opportunity cost for beans (1/5 pork vs. Trombonia's 1/3 pork), so Latalia has a comparative advantage in producing **beans**.
- **Trombonia** has a lower opportunity cost for pork (3 beans vs. Latalia's 5 beans), so Trombonia has a comparative advantage in producing **pork**.

### Conclusion
- **Latalia** should specialize in the production of **beans**.
- **Trombonia** should specialize in the production of **pork**.

By specializing based on comparative advantage, both countries can trade to benefit from a greater overall output.

Would you like to know more details or have any questions?

### Additional Questions to Explore:
1. How do absolute advantages differ from comparative advantages in this context?
2. What would the terms of trade look like between Latalia and Trombonia?
3. How can trade lead to an increase in overall consumption for both countries?
4. What would happen if one country did not specialize according to its comparative advantage?
5. How do changes in production capacity affect the comparative advantage?

**Tip:** Always check both opportunity costs to determine the comparative advantage when analyzing trade scenarios.

Explore how Latalia and Trombonia specialize based on comparative advantage using production possibilities tables. Analyze opportunity costs for pork and beans production to determine optimal specialization. Learn the economic principles of comparative advantage and its impact on trade.

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