Answer:
Felicidad: each bushel of rye cost 4 pairs of jeans
Arcadia: each bushel of rye cost 2 pair of jeans
As in comparison it takes less pair of the jean to produce a bushel of rye Arcadia has a comparative advantage in the production of rye
while Felicidad has it in the production of jeans.
Specialized economy:
Felicidad 16,000,000 pairs of jean
Arcadia 20,000,000 bushels of rye
Explanation:
The opportunity cost is the number of goods not produced as a result of the production choice.
For the bushel of rye, it will be the pairs of jeans.
For Felicidad Island will be:
16 jeans / 4 bushel of rye = 4 jeans
each bushel of rye cost 4 pairs of jeans
For Arcadia Island will be:
10 pair of jeans / 5 bushels of rye = 2 jeans
each bushel of rye cost 2 pair of jeans
If they specialize
Felicidad 4 millions labor hours x 4 pairs per hour = 16,000,000 jeans
Arcadia 4 millions labor hours x 5 bushel per hour = 20,000,000 bushel