If bintu and juba switch from each person dividing her time equally between the production of cups and bowls to each person spending all of her time producing the good in which she has a comparative advantage, then total production will increase by
a. 1 bowl and 1 cup.
b. 3 bowls and 5 cups.
c. 4 bowls and 8 cups.
d. 2 bowls and 4 cups.

Respuesta :

Answer:

A. 1 bowl and 1 cup

Step-by-step explanation:

Huba and binti would divide the time they spend in the production of these goods equally

If binti made 1 bowl and 4 cups

Huba made 2 bowls and 3 cups

Total goods produced

Cups = 7

Bowl = 3

If you check clearly at the graph, Bintus comparative advantage lies in cup production. Juba's own is in bowl production

If they both spend their brine in the production of this good,

Bintus will make 8 cups

Juba will make 4 bowls

Production will then increase by

8-7= 1 for cups

4-3 = 1 for bowls