Only after When neither country specializes, the total production of corn 3. Absolute and comparative advantageConsider two neighboring island countries, Charisma and Fiatstan. Each has 72,000 labor hours available per week that it can use to produce corn,jeans, or a combination of both. The following table shows the amount of labor hours required to produce 1 bushel of com or 1 pair of jeans.CornJeansCountry(Labor hours per bushel)(Labor hours per pair)Charisma8016Fiatstan2412Fiatstanhas an absolute advantage in the production of corn, andFiatstanhas an absolute advantage in the productionof jeans.Initially, suppose Charisma uses 54,000 hours of labor per week to produce corn and 18,000 hours per week to produce jeans, while Fiatstan uses18,000 hours of labor per week to produce corn and 54,000 hours per week to produce jeans. Assume there are no other countries willing to tradegoods, so in the absence of trade between these two countries, each country consumes the amount of corn and jeans it produces.Charisma's opportunity cost of producing 1 bushel of corn is 5 pairs v of jeans, and Fiatstan's opportunity cost of producing 1 bushel of com is2 pairsof jeans. Therefore, Fiatstanhas a comparative advantage in the production of corn, and Charismahas a comparativeadvantage in the production of jeans.When neither country specializes, the total production of corn isbushels per week, and the total production of jeans ispairs per week.Suppose that Charisma completely specializes in the production of the good in which it has a comparative advantage, producing only that good. It willproduceSuppose also that Fiatstan does not specialize and uses 54,000 hours of labor to produce corn and18,000 hours of labor towill producebushels of corn andpairs of jeans.bushels of conSuppose Charisma and pairs of jeans fade with each other, exchanging 1,100 bushels of corn for 3,300 pairs of jeans. In particular, Charisma will When neither country specializes, the total production of corn isbushels per week, and the total production of jeans ispairs per week.Suppose that Charisma completely specializes in the production of the good in which it has a comparative advantage, producing only that good. It willproduce18,000 hours of labor to produce jeans. It will produce. Suppose also that Fiatstan does not specialize and uses 54,000 hours of labor to produce corn and|bushels of corn andpairs of jeans.Suppose Charisma and Fiatstan agree to trade with each other, exchanging 1,100 bushels of corn for 3,300 pairs of jeans. In particular, Charisma willexport the goods it produces, and Fiatstan will export the goods that Charisma does not produce.With trade, Charisma willcorn andjeans. Fiatstan willcorn andjeans.When Charisma specializes and Fiatstan still produces the combination of goods using 54,000 hours of labor to produce corn and 18,000 hours of laborto produce jeans, the total production of corn becomesbushels per week, and the total production of jeans becomespairs per week.

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Accepted Answer

Total Number of hours present with both the nations : 72000 Hours 
Given labor hours required for…