Suppose both countries illustrated in Figure 35.1 specialized completely in the good they could produce with the lowest opportunity cost. What would the total production of motorcycles be?
A) 2,000.
B) 3,000.
C) 4,000.
D) 8,000.

Question

Suppose both countries illustrated in Figure 35.1 specialized completely in the good they could produce with the lowest opportunity cost. What would the total production of motorcycles be?
A) 2,000. 
B) 3,000. 
C) 4,000. 
D) 8,000.

Quizplus · Accepted Answer

Country A can produce 2,000 motorcycles with all of its resources and Country B can produce 2,000 motorcycles with all of its resources. Therefore, the total production of motorcycles if both countries specialize completely in the good they could produce with the lowest opportunity cost would be 4,000 motorcycles.

Suppose Both Countries Illustrated in Figure 35