3. If each of these two countries decides to specialize in production of the good for which it has a comparative advantage, and then it trades with the other country, total combined output for the countries will be:
  1. 50 computers and 50 burritos.
  2. 50 computers and 90 burritos.
  3. 150 burritos and 100 computers.
  4. 150 burritos and 150 computers.
  5. 250 burritos and 150 computers.
Country 1 Country 2
Burr. Comp. Burr. Comp.
150 0 100 0
120 10 80 20
90 20 60 40
60 30 40 60
30 40 20 80
0 50 0 100


Copyright © 1995-2004 OnLineTexts.com, Inc. - All Rights Reserved