Figure: Benin In the figure, Benin has 32 workers, and the price per ton of cotton and ton of rice is $2,500 and $1,200, respectively. The average wage with no trade is ______, and the average wage with trade is ________.
A) $850; $1,081.25
B) $768.75; $1,000
C) $1,000; $850
D) $1,000; $1,081.25

Question

Figure: Benin  In the figure, Benin has 32 workers, and the price per ton of cotton and ton of rice is $2,500 and $1,200, respectively. The average wage with no trade is ______, and the average wage with trade is ________.
A) $850; $1,081.25 
B) $768.75; $1,000 
C) $1,000; $850 
D) $1,000; $1,081.25

Quizplus · Accepted Answer

- The average wage with no trade can be calculated by dividing the total revenue (which is the total production of cotton and rice multiplied by their respective prices) by the total number of workers: 
    - Total production = (20 tons of cotton x $2,500) + (12 tons of rice x $1,200) = $62,400 
    - Average wage = $62,400 / 32 workers = $1,950 
- The average wage with trade can be calculated by finding the new prices of cotton and rice after trade (given in the figure as $2,000 and $1,500, respectively), and then dividing the total revenue by the total number of workers: 
    - Total production = (24 tons of cotton x $2,000) + (16 tons of rice x $1,500) = $60,000 
    - Average wage = $60,000 / 32 workers = $1,875 
Therefore, the answer is B, as it correctly gives the average wage with no trade as $768.75 and the average wage with trade as $1,000.

Figure: Benin in the Figure, Benin Has 32 Workers