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When a country specializes in the production of a good, this means that it can produce this good at a lower opportunity cost than its trading partner. Because of this comparative advantage, both countries benefit when they specialize and trade with each other.
The following graphs show the production possibilities frontiers (PPFs) for Maldonia and Lamponia. Both countries produce potatoes and coffee, each initially (i.e., before specialization and trade) producing 18 million pounds of potatoes and 9 million pounds of coffee, as indicated by the grey stars marked with the letter A.
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