Before Specialization Corn Production Rice Production (Tons per year) (Tons per year) United States (at point B) 100 25 Venezuela (at point C) 60 40 Total World Output After Specialization United States 0 75 Venezuela 180 0 Total World Output Total world output of corn has increased by specialization. tons, and the total output of rice has increased by tons, as a result of On the following graph, use the blue points (circle symbol) to plot the PPC for the United States and the green points (triangle symbol) to plot the PPC for Venezuela. Next, suppose that both countries specialize in the good for which they have a comparative advantage and then trade 50 tons of rice for 120 tons of corn. Use the grey point (star symbol) to plot the post-specialization and trade level of consumption for the United States. Use the orange point (square symbol) to plot the post-specialization and trade level of consumption for Venezuela. RICE (Tons) 75 50 25 0 25 50 100 125 150 175 CORN (Tons) United States PPF Venezuela PPF United States Post-Trade Consumption Venezuela Post-Trade Consumption After specialization and trading at the stated rates, both nations are now consuming both nations are off. their production possibilities curves. As a result, The United States and Venezuela produce corn and rice. The following production possibilities schedule describes their potential output in tons per year. Using the data in the table, answer the questions that follow. Point on the Production Possibilities Curve A B C D United States Corn Rice Venezuela Corn Rice (Tons per year) (Tons per year) (Tons per year) (Tons per year) 150 0 180 0 100 25 120 20 50 50 60 40 0 75 0 60 The opportunity cost of producing corn in the United States is approximately Venezuela is approximately tons of rice. tons of rice, and the opportunity cost of producing corn in The opportunity cost of producing 1 ton of rice in the United States is approximately rice in Venezuela is approximately tons of corn. tons of corn, and the opportunity cost of producing 1 ton of The United States has the comparative advantage in Venezuela has the comparative advantage in Suppose the United States is producing and consuming at point B on its production possibilities curve, and Venezuela is producing and consuming at point C on its production possibilities curve. Calculate the production of both corn and rice before and after specialization and enter those values in the following table. Corn Production Rice Production (Tons per year) (Tons per year) Before Specialization United States (at point B) 100 25 Venezuela (at point C) 60 40 Total World Output After Specialization United States 0 75