Suppose the United States and Japan each produce only two goods and have the production possibilities shown in Figure 17.1.Without trade,Japan produces at point A and the United States produces at point B.Use the figure to answer the question(s)below.
-Suppose both countries illustrated in Figure 17.1 specialize completely in the good they produce with the lowest opportunity cost.What is the total production of DVD players?

Question

Suppose the United States and Japan each produce only two goods and have the production possibilities shown in Figure 17.1.Without trade,Japan produces at point A and the United States produces at point B.Use the figure to answer the question(s)below. 
-Suppose both countries illustrated in Figure 17.1 specialize completely in the good they produce with the lowest opportunity cost.What is the total production of DVD players?

Quizplus · Accepted Answer

When both countries specialize in the good they produce with the lowest opportunity cost, they maximize their production efficiency. The total production of DVD players would be the sum of what both countries can produce when specializing, which is 4,000.

Suppose the United States and Japan Each Produce Only Two