Refer to the information provided in Table 20.1 below to answer the question(s) that follow.
Table 20.1 $\quad $$\quad $$\quad $$\quad $$\quad $ $\text {Mexico}$$\quad $ $\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$ \text {Guatemala}$
$\begin{array}{rrrr}
\text {Oranges}& \text {Bananas}& \text {Oranges}& \text {Bananas}\
\text { bushel/acre}&\text { bushel/acre }&\text { bushel/acre}&\text { bushel/acre }\
\hline 200 & 0 & 50 & 0 \
160 & 40 & 40 & 20 \
120 & 80 & 30 & 40 \
80 & 120 & 20 & 60 \
40 & 160 & 10 & 80 \
0 & 200 & 0 & 100 \
\hline
\end{array}$

-Refer to Table 20.1. 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 20.1 below to answer the question(s) that follow.
Table 20.1 $\quad $$\quad $$\quad $$\quad $$\quad $ $\text {Mexico}$$\quad $ $\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$ \text {Guatemala}$
$\begin{array}{rrrr}
 \text {Oranges}& \text {Bananas}& \text {Oranges}& \text {Bananas}\ 
\text { bushel/acre}&\text {  bushel/acre }&\text { bushel/acre}&\text {  bushel/acre }\
\hline  200 & 0 & 50 & 0 \
160 & 40 & 40 & 20 \
120 & 80 & 30 & 40 \
80 & 120 & 20 & 60 \
40 & 160 & 10 & 80 \
0 & 200 & 0 & 100 \
\hline
\end{array}$

-Refer to Table 20.1. 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

Before specialization, Mexico and Guatemala together produce 40 (Mexico) + 40 (Guatemala) = 80 bushels of bananas. After specialization, Mexico should specialize in oranges (where it has a higher production capacity) and Guatemala in bananas (where it has a comparative advantage). Looking at the maximum production after specialization, Mexico would produce 0 bananas, and Guatemala would produce 100 bananas. The increase in banana production after specialization is 100 - 80 = 20 bushels of bananas.

Refer to the Information Provided in Table 20 \quad \quad

Refer to the Information Provided in Table 20 $\quad$ $\quad$