Costs of the PPF, economics homework help

800-1,000 wordsSuppose that there are two products: clothing and soda. Both Braziland the United States produce each product. Brazil can produce 100,000units of clothing per year and 50,000 cans of soda. The UnitedStates can produce 65,000 units of clothing per year and 250,000 cans ofsoda. Assume that costs remain constant. For this example, assume thatthe production possibility frontier (PPF) is a straight line for eachcountry because no other data points are available or provided. Include aPPF graph for each country in your paper. Chapter 5 of the Suranovictext is a good reference for this task.Complete the following:What would be the production possibility frontiers for Brazil and the United States?Without trade, the United States produces AND CONSUMES 32,500 units of clothing and 125,000 cans of soda.Without trade, Brazil produces AND CONSUMES 50,000 units of clothing and 25,000 cans of soda.Denote these points on each COUNTRY’s production possibility frontier.Using what you have learned and any independent research youmay conduct, which product should each country specialize in, and why? To assist in your thinking and discussion, additional questions to consider include:What is the labor-intensive good?What is the Marginal Rate of Transformation impact?What is the labor-abundant country?What is the capital-abundant country?Could trade help reduce poverty in Brazil and other developing countries?