3. This question just asks for total output if the two countries specialize in producing the product where each has a comparative advantage.
We've already established that Country 1 has a comparative advantage in burrito production, so it should specialize and produce 150 burritos and 0 computers. We know that Country 2 has a comparative advantage in computer production, so it should specialize and produce 100 computers and 0 burritos. Any total outputs higher than choice c. "150 burritos and 100 computers." aren't feasible, and lower than that come from not specializing. |
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