Table 13.1 shows the production possibilities curves for Augustus and Nero.Prior to specialization and trade,Augustus is producing combination B,and Nero is producing combination D.
Table 13.1

a)What is the total output of the two countries for both products?
b)If each country were to specialize in the product in which it has a comparative advantage,what will be the total output of the two countries for both products?
c)What will be the gain from trade?

Question

Table 13.1 shows the production possibilities curves for Augustus and Nero.Prior to specialization and trade,Augustus is producing combination B,and Nero is producing combination D.
Table 13.1
  
a)What is the total output of the two countries for both products?
b)If each country were to specialize in the product in which it has a comparative advantage,what will be the total output of the two countries for both products?
c)What will be the gain from trade?

Quizplus · Accepted Answer

The Answer of Table 13.1 shows the production possibilities curves for Augustus and Nero.Prior to specialization and trade,Augustus is producing combination B,and Nero is producing combination D.
Table 13.1
  
a)What is the total output of the two countries for both products?
b)If each country were to specialize in the product in which it has a comparative advantage,what will be the total output of the two countries for both products?
c)What will be the gain from trade?

Table 131 Shows the Production Possibilities Curves for Augustus and Nero