Table 3-36
-Refer to Table 3-36. Assume that Antigua and Barbuda each has 60 minutes available. If each island spends all its time producing the good in which it has a comparative advantage, then total production is
A)4 towels and 3 umbrellas.
B)5 towels and 6 umbrellas.
C)8 towels and 10 umbrellas.
D)9 towels and 9 umbrellas.

Question

Table 3-36 
-Refer to Table 3-36. Assume that Antigua and Barbuda each has 60 minutes available. If each island spends all its time producing the good in which it has a comparative advantage, then total production is
A)4 towels and 3 umbrellas. 
B)5 towels and 6 umbrellas. 
C)8 towels and 10 umbrellas. 
D)9 towels and 9 umbrellas.

Quizplus · Accepted Answer

According to the table, Antigua has a comparative advantage in producing towels and Barbuda has a comparative advantage in producing umbrellas. If each island spends all their time producing the good in which they have a comparative advantage, Antigua would produce 3 towels and Barbuda would produce 6 umbrellas. Therefore, the total production would be 5 towels and 6 umbrellas (3 + 2 towels and 4 + 2 umbrellas).

Table 3-36 -Refer to Table 3-36. Assume That Antigua and Barbuda Each