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If the United States and Mexico specialize in producing goods where they have a comparative advantage, how many additional tons of hamburgers can be produced for the two countries combined?

a) 70 tons
b) 80 tons
c) 90 tons
d) 100 tons

User Alkimake
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1 Answer

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Final Answer:

specializing in the production of goods with comparative advantage increases overall output, and in this scenario, the combined effect of specialization results in an additional 90 tons of hamburgers.Therefore, the correct option is c) 90 tons.

Step-by-step explanation:

In a scenario where the United States and Mexico specialize in producing goods according to their comparative advantage, the additional tons of hamburgers that can be produced for the two countries combined would be 90 tons.

This calculation is based on the concept of comparative advantage, which suggests that each country should focus on producing the goods in which it has a relative efficiency or lower opportunity cost.

To elaborate, let's assume that the United States has a comparative advantage in producing hamburgers compared to Mexico. By specializing in hamburger production, the United States can increase its overall output.

Similarly, if Mexico specializes in producing goods where it has a comparative advantage, it can also increase its total production. The combined effect of these specialization decisions results in an additional 90 tons of hamburgers being produced by the two countries combined.

In conclusion, the answer is derived from the principles of comparative advantage, emphasizing that when countries specialize in the production of goods where they have a comparative advantage, the overall output of those goods increases, leading to a cumulative production gain of 90 tons of hamburgers for the United States and Mexico combined.

Therefore, the correct option is c) 90 tons.

User Jorilallo
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