Question: Assume that Mexico and Canada can switch between producing corn and producing sugar at a constant rate. Hours needed to produce 1 lb. corn
Assume that Mexico and Canada can switch between producing corn and producing sugar at a constant rate. Hours needed to produce 1 lb. corn 30 50 Mexico Canada sugar 150 150 Assume that Mexico and Canada each have 2400 hours available. Originally, each country divided their time equally between the production of corn and sugar. Now, each country spends all their time producing the good in which it has a comparative advantage. As a result, the total output of corn increases by how many lbs?
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To determine the increase in total output of corn we need to compare the original production levels ... View full answer
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