(Solved): The following table describes the production possibilities of two cities in the country of Baseball ...

The following table describes the production possibilities of two cities in the country of Baseballia: Without trade, the price of a pair of white socks (in terms of red socks) in Boston is of red socks, and in Chicago it of red socks. has an absolute advantage in the production of red socks, and has an absolute advantage in the production of white socks. has a comparative advantage in the production of red socks, and has a comparative advantage in the production of : If the cities trade with each other, Boston will export socks, and Chicago will export _ socks. The price of white socks can be expressed in terms of red socks. The highest price at which white socks can be traded that would make both citie better off is of red socks per pair of white socks, and the lowest price that makes both cities better off is socks per pair of white socks.