Given That Home L 20 Alc 2 Alw 1 Foreign L 20 A Lc 2 A Lw 2 A Prove That 2 Count

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…