Use the following table showing production possibilities for herbs and cosmetics from one unit of resources in Country J and one unit of resources in Country K.

-If each country has two units of resources and if each country specializes according to its comparative advantage, the combined output of herbs and cosmetics will be:

Question

Use the following table showing production possibilities for herbs and cosmetics from one unit of resources in Country J and one unit of resources in Country K.
 
-If each country has two units of resources and if each country specializes according to its comparative advantage, the combined output of herbs and cosmetics will be:

Quizplus · Accepted Answer

When countries specialize according to their comparative advantage, they produce goods more efficiently, leading to an increase in overall production. The given options suggest a scenario where specialization occurs, and option C provides a balanced output of both herbs and cosmetics, which is typical in trade based on comparative advantage.

Use the Following Table Showing Production Possibilities for Herbs and Cosmetics