Use the information below to answer the following questions.
Fact 2.4.2
Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour.
-Given Fact 2.4.2, what would be the total output of X and Y in an eight-hour day if Agnes and Brenda each specialized in producing the good in which they have a comparative advantage?
A)3 units of X and 5 units of Y
B)8 units of X and 16 units of Y
C)8 units of X and 32 units of Y
D)24 units of X and 40 units of Y
E)16 units of X and 8 units of Y

Question

Quizplus · Accepted Answer

Agnes has a comparative advantage in producing Y (1Y vs. 1X), and Brenda has a comparative advantage in producing X (2X vs. 4Y). If Agnes produces Y for 8 hours, she makes 8Y. If Brenda produces X for 8 hours, she makes 16X. Total output is 16X and 8Y.

Use the Information Below to Answer the Following Questions