Comparative Advantage Assignment | Homework For You

6. Suppose that a worker in Grainland can develop each 40 bushels of corn or 20 bushels of oats per 12 months, and a worker in Farmfields can develop each 20 bushels of corn or 50 bushels of oats per 12 months.

There are 200 workers in Grainland and 200 workers in Farmfields. If the two worldwide areas do not commerce, Grainland will produce and eat 4,000 bushels of corn and a few,000 bushels of oats, whereas Farmfields will produce and eat 2,000 bushels of corn and 5,000 bushels of oats. Combined output for the two worldwide areas would, subsequently, be 6,000 bushels of corn and 7,000 bushels of oats. If the two worldwide areas do commerce, each will totally concentrate on producing the crop for which it has a comparative profit. If commerce occurs, combined output for the two worldwide areas will improve by

A. eight,000 bushels of corn and 10,000 bushels of oats.

B. 5,000 bushels of corn and 7,000 bushels of oats

C. three,000 bushels of corn and three,000 bushels of oats.

D. 2,000 bushels of corn and three,000 bushels of oats.

E. zero bushels of corn and nil bushels of oats. Economics homework help