Refer to the information provided in Table 18.1 below to answer the questions that follow.
Table 18.1
-Refer to Table 18.1. 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 18.1 below to answer the questions that follow.
Table 18.1 
-Refer to Table 18.1. 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, countries focus on producing goods for which they have a comparative advantage. If Mexico and Guatemala specialize, they will allocate resources to maximize banana production, leading to an increase of 20 bushels of bananas.

Refer to the Information Provided in Table 18