Calculate the gains from trade, Mathematics

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Table shows the productivity for the countries Pin and Pang.

2150_Calculate the Gains from Trade.png

1) If the working population of Pin and Pang are both 6 million, divided equally between the two industries in each country, how many machines and bread are currently being produced in Pin and Pang?

2)    If the two countries decide to specialize, in which product does each country have a comparative advantage?

3)     If the two countries were to totally specialize, what would be the resulting  combined totals?

4) What are the gains from trade?


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