Scenario: Countries A and B

Two countries, A and B, produce two goods, wheat (W) and Steel (S).Each has a linear production possibility frontier in both goods.

If Country A spends all of its available resources to produce Wheat, it can produce 500 tons of Wheat and no Steel.

If it uses all of its resources to produce Stee, it can produce 259 tons of Steel and no Wheat.

If Country B spends all of its available resources producing Wheat, it can produce 400 tons of Wheat, and if it

spends all of its resources on the production of Steel, it can produce 400 tons of Steel.

9.(Scenario: Countries A and B) Use Scenario: Countries A and B. If each country devotes half of its resources to the production of wheat and half to the production of steel, then their combined total production of wheat will be _____ tons and their combined total production of steel will be _____ tons.

a.

450; 325

b.

900; 650

c.

500; 250

d.

400; 400