Table 3-6
Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate.

-Refer to Table 3-6.Maya should specialize in the production of
A) mixers and Miguel should specialize in the production of toasters.
B) toasters and Miguel should specialize in the production of mixers.
C) both goods and Miguel should specialize in the production of neither good.
D) neither good and Miguel should specialize in the production of both goods.

Question

Table 3-6
Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate.
 
-Refer to Table 3-6.Maya should specialize in the production of
A) mixers and Miguel should specialize in the production of toasters. 
B) toasters and Miguel should specialize in the production of mixers. 
C) both goods and Miguel should specialize in the production of neither good. 
D) neither good and Miguel should specialize in the production of both goods.

Quizplus · Accepted Answer

Maya has a comparative advantage in producing mixers, and Miguel has a comparative advantage in producing toasters. Therefore, they should specialize in producing the goods in which they have a comparative advantage.

Table 3-6 Assume That Maya and Miguel Can Switch Between Producing Mixers