Suppose that in Colombia one unit of labor can produce 8 tons of papayas or 2 tons of bananas and in Brazil, one unit of labor can produce either 2 tons of papayas or 4 tons of bananas. If each country has two units of labor, which of the following consumption combinations can be attained only with trade?
A) Brazil consumes 8 tons of bananas and no papayas.
B) Colombia consumes 16 tons of papayas and no bananas.
C) Brazil consumes 2 tons of papayas and 4 tons of bananas.
D) Colombia consumes 8 tons of papayas and 4 tons of bananas.

Question

Quizplus · Accepted Answer

Colombia can produce 16 tons of papayas or 4 tons of bananas with 2 units of labor. Without trade, it cannot produce both 8 tons of papayas and 4 tons of bananas simultaneously.

Suppose That in Colombia One Unit of Labor Can Produce