Refer to the information provided in Table 33.1 below to answer the question(s) that follow.
Table 33.1
-Refer to Table 33.1. Before specialization, Mexico produces 120 bushels of oranges and 80 bushels of bananas, and Guatemala produces 40 bushels of oranges and 20 bushels of bananas. After specialization, the increase in orange production is
A) 10 bushels of oranges.
B) 20 bushels of oranges.
C) 25 bushels of oranges.
D) 40 bushels of oranges.

Question

Refer to the information provided in Table 33.1 below to answer the question(s) that follow.
Table 33.1 
-Refer to Table 33.1. Before specialization, Mexico produces 120 bushels of oranges and 80 bushels of bananas, and Guatemala produces 40 bushels of oranges and 20 bushels of bananas. After specialization, the increase in orange production is
A) 10 bushels of oranges. 
B) 20 bushels of oranges. 
C) 25 bushels of oranges. 
D) 40 bushels of oranges.

Quizplus · Accepted Answer

After specialization, countries focus on producing goods for which they have a comparative advantage. If Mexico and Guatemala specialize, the total production of oranges increases by 40 bushels.

Refer to the Information Provided in Table 33