Assume that the world economy consists of two countries: Russia and Republic of Belarus. Each country can produce tomatoes and potatoes. Russia can produce 1000 tons of tomatoes or 3000 tons of potatoes or any linear combination of tomatoes and potatoes that satisfies potatoes + 3 × tomatoes = 3000. Republic of Belarus can produce 500 tons of tomatoes or 1000 tons of potatoes or any linear combination of tomatoes and potatoes that satisfies potatoes + 2 × tomatoes = 1000. Countries can freely trade with each other.
-If people in both countries eat the same dish that requires 0.1 kg of tomatoes and 1.4 kg of potatoes to prepare,how much potatoes will be produced in the Republic of Belarus?
A) None
B) 333.33 tons
C) 500 tons
D) 666.67 tons

Question

Quizplus · Accepted Answer

First, we need to set up the equations for the production possibilities frontier (PPF) for each country.

For Russia: potatoes + 3 × tomatoes = 3000 
=> tomatoes = (3000 - potatoes) / 3

So the PPF for Russia is: 
Tomatoes: 1000 
Potatoes: 3000

For Republic of Belarus: potatoes + 2 × tomatoes = 1000 
=> tomatoes = (1000 - potatoes) / 2

So the PPF for Republic of Belarus is: 
Tomatoes: 500 
Potatoes: 1000

Next, we need to find the opportunity cost of tomatoes and potatoes in each country.

For Russia: 
Opportunity cost of a ton of potatoes = (1 ton of tomatoes) / 3 = 0.333 tons of tomatoes 
Opportunity cost of a ton of tomatoes = (1 ton of potatoes) * 3 = 3 tons of potatoes

For Republic of Belarus: 
Opportunity cost of a ton of potatoes = (1 ton of tomatoes) / 2 = 0.5 tons of tomatoes 
Opportunity cost of a ton of tomatoes = (1 ton of potatoes) * 2 = 2 tons of potatoes

Based on these opportunity costs, we can see that Republic of Belarus has a comparative advantage in producing tomatoes, while Russia has a comparative advantage in producing potatoes.

Now, let's look at the dish that requires 0.1 kg of tomatoes and 1.4 kg of potatoes.

Russia can produce 1000 tons of tomatoes, which is equivalent to 1,000,000 kg of tomatoes. 
This means Russia can produce 1,000,000 / 0.1 = 10,000,000 servings of the dish.

However, to produce that many servings of the dish, Russia would need 10,000,000 * 1.4 = 14,000,000 kg of potatoes. 
Since Russia can only produce 3000 tons of potatoes, it cannot produce enough potatoes to make that many servings of the dish.

On the other hand, Republic of Belarus can produce 500 tons of tomatoes, which is equivalent to 500,000 kg of tomatoes. 
This means Republic of Belarus can produce 500,000 / 0.1 = 5,000,000 servings of the dish.

To produce that many servings of the dish, Republic of Belarus would need 5,000,000 * 1.4 = 7,000,000 kg of potatoes. 
Since Republic of Belarus can produce 1000 tons of potatoes, it can produce enough potatoes to make that many servings of the dish.

Therefore, the answer is C) 500 tons.

Assume That the World Economy Consists of Two Countries: Russia