Table 3-11
Assume that Bahamas and Denmark can switch between producing coolers and producing radios at a constant rate.

-Refer to Table 3-11. Assume that Bahamas and Denmark each has 8 days available for production. Originally, each country divided its time equally between the production of coolers and radios. Now, each country spends all its time producing the good in which it has a comparative advantage. As a result, the total output of coolers increased by
A)12.
B)48.
C)96.
D)192.

Question

Table 3-11
Assume that Bahamas and Denmark can switch between producing coolers and producing radios at a constant rate.
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-Refer to Table 3-11. Assume that Bahamas and Denmark each has 8 days available for production. Originally, each country divided its time equally between the production of coolers and radios. Now, each country spends all its time producing the good in which it has a comparative advantage. As a result, the total output of coolers increased by
A)12. 
B)48. 
C)96. 
D)192.

Quizplus · Accepted Answer

The increase in total output of coolers is due to both countries specializing in the good for which they have a comparative advantage. If the total output of coolers increased by 48, it indicates that the specialization led to a significant increase in cooler production.

Table 3-11 Assume That Bahamas and Denmark Can Switch Between Producing Coolers