The following data outline production choices (A or B) in two nations, Landia and Scandia. Landia has a workforce of 12 and Scandia has a workforce of 10.
-Assume that before specialization and trade,each nation devoted half of its workforce to each product.If these two nations now fully specialize in accordance with comparative advantage,the total gains from specialization would be:
A) 8 chips
B) 50 chips and 24 fish
C) 32 fish
D) 8 chips and 32 fish
E) 24 chips and 32 fish
Correct Answer:
Verified
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