PART 2 OF 2 - PLEASE HELP ME SOLVE THIS PROBLEM. THANKS! (PART 1 ATTACHED FOR REFERENCE ONLY) In the following table, enter each country's production decision on the third row of the table (marked "Production").Suppose the country that produces jeans trades 18 million pairs of jeans to the other country in exchange for 54 million bushels of corn.In the following table, select the amount of each good that each country exports and imports in the boxes across the row marked "Trade Action," andenter each country's final consumption of each good on the line marked "Consumption."When the two countries did not specialize, the total production of jeans was 23 million pairs per week, and the total production of corn was 68 millionbushels per week. Because of specialization, the total production of jeans has increased bymillion pairs per week, and the total production ofcorn has increased bymillion bushels per week.Because the two countries produce more jeans and more corn under specialization, each country is able to gain from trade.Calculate the gains from trade-that is, the amount by which each country has increased its consumption of each good relative to the first row of thetable. In the following table, enter this difference in the boxes across the last row (marked "Increase in Consumption").BellissimaDoloriumJeansCornJeansCorn(Millions of pairs)(Millions of bushels)(Millions of pairs)(Millions of bushels)Without TradeProduction8481520Consumption8481520With TradeProductionTrade actionConsumptionGains from TradeIncrease in Consumption 3. Gains from tradeConsider two neighboring island countries called Bellissima and Dolorium. They each have 4 million labor hours available per week that they can use toproduce jeans, corn, or a combination of both. The following table shows the amount of jeans or corn that can be produced using 1 hour of labor.JeansCornCountry(Pairs per hour of labor)(Bushels per hour of labor)Bellissima816Dolorium20Initially, suppose Bellissima uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce corn, while Dolorium uses3 million hours of labor per week to produce jeans and 1 million hours per week to produce corn. Consequently, Bellissima produces 8 million pairs ofjeans and 48 million bushels of corn, and Dolorium produces 15 million pairs of jeans and 20 million bushels of corn. Assume there are no othercountries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and corn itproduces.Bellissima's opportunity cost of producing 1 pair of jeans isof corn, and Dolorium's opportunity cost of producing 1 pair of jeans isof corn. Therefore,has a comparative advantage in the production of jeans, andhas acomparative advantage in the production of corn.Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. Inthis case, the country that produces jeans will producemillion pairs per week, and the country that produces corn will producemillion bushels per week.

Question

PART 2 OF 2 - PLEASE HELP ME SOLVE THIS PROBLEM. THANKS! (PART 1 ATTACHED FOR REFERENCE ONLY) In the following table, enter each country's production decision on the third row of the table (marked &#34;Production&#34;).Suppose the country that produces jeans trades 18 million pairs of jeans to the other country in exchange for 54 million bushels of corn.In the following table, select the amount of each good that each country exports and imports in the boxes across the row marked &#34;Trade Action,&#34; andenter each country's final consumption of each good on the line marked &#34;Consumption.&#34;When the two countries did not specialize, the total production of jeans was 23 million pairs per week, and the total production of corn was 68 millionbushels per week. Because of specialization, the total production of jeans has increased bymillion pairs per week, and the total production ofcorn has increased bymillion bushels per week.Because the two countries produce more jeans and more corn under specialization, each country is able to gain from trade.Calculate the gains from trade-that is, the amount by which each country has increased its consumption of each good relative to the first row of thetable. In the following table, enter this difference in the boxes across the last row (marked &#34;Increase in Consumption&#34;).BellissimaDoloriumJeansCornJeansCorn(Millions of pairs)(Millions of bushels)(Millions of pairs)(Millions of bushels)Without TradeProduction8481520Consumption8481520With TradeProductionTrade actionConsumptionGains from TradeIncrease in Consumption 3. Gains from tradeConsider two neighboring island countries called Bellissima and Dolorium. They each have 4 million labor hours available per week that they can use toproduce jeans, corn, or a combination of both. The following table shows the amount of jeans or corn that can be produced using 1 hour of labor.JeansCornCountry(Pairs per hour of labor)(Bushels per hour of labor)Bellissima816Dolorium20Initially, suppose Bellissima uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce corn, while Dolorium uses3 million hours of labor per week to produce jeans and 1 million hours per week to produce corn. Consequently, Bellissima produces 8 million pairs ofjeans and 48 million bushels of corn, and Dolorium produces 15 million pairs of jeans and 20 million bushels of corn. Assume there are no othercountries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and corn itproduces.Bellissima's opportunity cost of producing 1 pair of jeans isof corn, and Dolorium's opportunity cost of producing 1 pair of jeans isof corn. Therefore,has a comparative advantage in the production of jeans, andhas acomparative advantage in the production of corn.Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. Inthis case, the country that produces jeans will producemillion pairs per week, and the country that produces corn will producemillion bushels per week.

Accepted Answer

Comparative advantage: Comparative advantage is a situation where the cost of manufacturing or…