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Fact 2.3.2
Agnes can produce either 1 unit of X or 1 unit of Y in an hour,while Brenda can produce either 2 units of X or 4 units of Y in an hour.
-Given Fact 2.3.2,what would be the total output of X and Y in an eight-hour day if Agnes and Brenda each specialized in producing the good in which they have a comparative advantage?
A)3 units of X and 5 units of Y
B)8 units of X and 16 units of Y
C)8 units of X and 32 units of Y
D)24 units of X and 40 units of Y
E)16 units of X and 8 units of Y

Question

Quizplus · Accepted Answer

Agnes' comparative advantage is in producing X because she can produce 1 unit of X in an hour while Brenda can only produce 0.5 units of X in an hour. Brenda's comparative advantage is in producing Y because she can produce 4 units of Y in an hour while Agnes can only produce 1 unit of Y in an hour.

Thus, if Agnes specializes in producing X for 8 hours, she can produce 8 units of X. If Brenda specializes in producing Y for 8 hours, she can produce 32 units of Y.

Therefore, the total output would be 8 units of X and 32 units of Y, which is option C.

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