The maximum production possible in Rome and in Cathay are as follows:

-If each country is self-sufficient (no trade)and each allocates one half of its resources to producing each of the two products,what will be the output in each country?
A)40 bread and 20 figs in Rome and 20 bread and 40 figs in Cathay.
B)40 bread and 0 figs in Rome and 20 bread and 0 figs in Cathay.
C)0 bread and 20 figs in Rome and 0 bread and 40 figs in Cathay.
D)20 bread and 10 figs in Rome and 10 bread and 20 figs in Cathay.

Question

The maximum production possible in Rome and in Cathay are as follows:
 
-If each country is self-sufficient (no trade)and each allocates one half of its resources to producing each of the two products,what will be the output in each country?
A)40 bread and 20 figs in Rome and 20 bread and 40 figs in Cathay. 
B)40 bread and 0 figs in Rome and 20 bread and 0 figs in Cathay. 
C)0 bread and 20 figs in Rome and 0 bread and 40 figs in Cathay. 
D)20 bread and 10 figs in Rome and 10 bread and 20 figs in Cathay.

Quizplus · Accepted Answer

Since the maximum production possible in Rome and Cathay is equal for both bread and figs, each country can allocate half of their resources for each product. Therefore, Rome will produce 20 bread and 20 figs, and Cathay will produce 20 bread and 20 figs. Hence, the total output will be 40 bread and 40 figs. Option D matches this result, so the answer is D.

The Maximum Production Possible in Rome and in Cathay Are