Answer to Question #136354 in Microeconomics for audrey

Question

Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces corn will produce
million bushels per week, and the country that produces jeans will produce
million pairs per week.

Answer 1

suppose country has total 4 million hours of labor per week. He uses 3 million hours of labor per week to produce corn and produces 15 million bushels of corn.

If he uses all 4 million hours of labor per week, he can produces 20 million bushels of corn.

He uses 1 million hours of labor per week to produce jeans and produces 20 million pairs of jeans.

If he uses all 4 million hours of labor per week, he can produce 80 million pairs of jeans.

So, using all 4 million hours of labor per week, Felicidad can produce either 20 million bushels of corn or 80 million pairs of jeans.

Content has total 4 million hours of labor per week. He uses 1 million hours of labor per week to produce corn and produces 8 million bushels of corn.

If he uses all 4 million hours of labor per week, he can produces 32 million bushels of corn.

He uses 3 million hours of labor per week to produce jeans and produces 48 million pairs of jeans.

If he uses all 4 million hours of labor per week, he can produce 64 million pairs of jeans.

So, using all 4 million hours of labor per week, Content can produce either 32 million bushels of corn or 64 million pairs of jeans.