Below is the productivity per worker (kilos per day)in the wheat and bean industries of Caledonia and Ibrox.The working population in each country is 16 million people.

-Refer to the data above to answer this question.If each country totally specializes in the product in which it has a comparative advantage,what is the total combined output that they are capable of producing?

Question

Below is the productivity per worker (kilos per day)in the wheat and bean industries of Caledonia and Ibrox.The working population in each country is 16 million people.
 
-Refer to the data above to answer this question.If each country totally specializes in the product in which it has a comparative advantage,what is the total combined output that they are capable of producing?

Quizplus · Accepted Answer

If each country totally specializes in the product in which it has a comparative advantage, then the total combined output that they are capable of producing is 160 wheat and 192 beans. This is because Canada can produce wheat at a lower opportunity cost than beans, and Mexico can produce beans at a lower opportunity cost than wheat. Therefore, if each country specializes in the product in which it has a comparative advantage, they can produce more of both goods than if they were to produce both goods in each country.

Below Is the Productivity Per Worker (Kilos Per Day)in the Wheat