Question
Assume output was initially 100 wheat and 25 TV's in Country A and 40
wheat and 40 TV's in Country B. If both countries specialize according to
comparative advantage, their combined production of wheat changes from
140 to
and their combined
production of TV's changes from 65 to
based on the graphs below.
Wheat
Country A
Wheat
Country B
200
80
Television Sets
80
Television Sets
50
280; 130
200; 80
80; 50
200; 50
expand button
Transcribed Image Text:Assume output was initially 100 wheat and 25 TV's in Country A and 40 wheat and 40 TV's in Country B. If both countries specialize according to comparative advantage, their combined production of wheat changes from 140 to and their combined production of TV's changes from 65 to based on the graphs below. Wheat Country A Wheat Country B 200 80 Television Sets 80 Television Sets 50 280; 130 200; 80 80; 50 200; 50
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