Answer the next three questions on the basis of the following production possibilities data for Francia and Galacia.All data are in tons. 
(a) If trade occurs between Francia and Galacia, which nation should export what product? Why?(b) What are the limits of the terms of trade between Francia and Galacia?(c) Assume that prior to specialization and trade, Francia and Galacia chose production possibility "C." Now each specializes according to comparative advantage.What will be the resulting gains from trade? Explain your answer.
Definitions:
Diminishing Marginal Returns
A principle stating that as additional units of a variable input are added to a fixed input, the additional output produced from each new unit decreases beyond a certain point.
Diminishing Marginal Returns
A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot increase forever and will eventually decrease.
Marginal Product
The additional output that is produced by adding one more unit of a certain input while holding other inputs constant.
Picture Framer
A professional or business specialized in enclosing pictures, photographs, or artwork in frames.
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