Produce agricultural products

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Both Canada and the U.S. can produce agricultural products. Let's say that the U.S. produces 35 billion pounds of vegetables in a year or 26 billion pounds of beef. Canada can produce 26 billion pounds of beef per year or 28 billion pounds of vegetables. Let’s assume that the two trading partners can only produce these two goods and that they can only trade with each other. Let’s also simplify this by assuming that there are not diminishing returns to investment, so the PPF for each country is not bowed out.

How many more pounds of vegetables (in billions) would there be in the economy as a whole as a result of specialization? (Just numbers to 1 decimal place)

Reference no: EM131173899

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