Information for questions 14-18 The world is made of two cou…
Information for questions 14-18 The world is made of two countries, La La Land, and Liverpond. Labor is the only factor of production. La La Land has 100 hours of labor available to be employed, while Liverpond has 200 hours of labor available to be employed. There are two goods, songs and movies. The following table shows the output of each good per hour of labor, in the two countries. La La Land Liverpond Songs 10 4 Movies 20 5 In order for both countries to gain from trade, they must trade each movie (not song) for anywhere between