Given that:Home: L=20, aLC= 2, aLW= 1Foreign: L*=20, a*LC= 2, a*LW=2a)Prove that 2 countries benefit from tradeb)Graphically illustrate the benefits.

ome: L=20, aLC= 2, aLW= 1Foreign: L*=20, a*LC= 2, a*LW=2a)Prove that 2 countries benefit from tradeequation of PPf in home:2C+W=20Opportunity cost of C in terms of W=-2Equation of PPf in…

 

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