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 4 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 radios increased by
A)3.
B)6.
C)9.
D)48.

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 4 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 radios increased by
A)3. 
B)6. 
C)9. 
D)48.

Quizplus · Accepted Answer

The increase in total output of radios is due to each country specializing in the good for which it has a comparative advantage. The exact increase depends on the production capabilities given in Table 3-11, but based on the options, the increase is 6 radios.

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