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 160 bushels of oranges and 40 bushels of bananas, and Guatemala produces 30 bushels of oranges and 40 bushels of bananas. After specialization, the increase in banana production is
A) 10 bushels of bananas.
B) 15 bushels of bananas.
C) 20 bushels of bananas.
D) 40 bushels of bananas.

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 160 bushels of oranges and 40 bushels of bananas, and Guatemala produces 30 bushels of oranges and 40 bushels of bananas. After specialization, the increase in banana production is
A) 10 bushels of bananas. 
B) 15 bushels of bananas. 
C) 20 bushels of bananas. 
D) 40 bushels of bananas.

Quizplus · Accepted Answer

After specialization, Mexico and Guatemala focus on producing the good for which they have a comparative advantage. Assuming Mexico specializes in oranges and Guatemala in bananas, Guatemala can increase its banana production by reallocating resources from orange production, leading to an increase of 20 bushels of bananas.

Refer to the Information Provided in Table 33