3. Two nations produce the same two goods. The following table represents their productive abilities and capacities Mozambique Cuba Total Tables Output capability per hour Opportunity Cost Total available Hours Hours dedicated for each product Output w/o Specialization Output w/ Specialization Price Output Value w/o Specialization Output Value wl Specialization Chairs 10 7 600.00 2.50 1000 400.00 12.00 4 Chairs 1200 400.00 2.50 Tables 2 800.00 12.00 Chairs n/a n/a 2.50 Tables n/a n/a 12.00 a. Complete entries in the table above. b. Which nation should specialize in chairs? How about tables? Explain your answer.
3. Two nations produce the same two goods. The following table represents their productive abilities and capacities Mozambique Cuba Total Tables Output capability per hour Opportunity Cost Total available Hours Hours dedicated for each product Output w/o Specialization Output w/ Specialization Price Output Value w/o Specialization Output Value wl Specialization Chairs 10 7 600.00 2.50 1000 400.00 12.00 4 Chairs 1200 400.00 2.50 Tables 2 800.00 12.00 Chairs n/a n/a 2.50 Tables n/a n/a 12.00 a. Complete entries in the table above. b. Which nation should specialize in chairs? How about tables? Explain your answer.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:3. Two nations produce the same two goods. The following table represents their productive abilities and capacities
Mozambique
Chairs
Cuba
Total
Tables
Chairs
Tables
Chairs
Tables
Output capability per
hour
10 7
4
2
n/a
n/a
Opportunity Cost
Total available Hours
1000
1200
n/a
n/a
Hours dedicated for each
product
600.00
400.00
400.00
800.00
Output wlo Specialization
Output w/ Specialization
Price
2.50
12.00
2.50
12.00
2.50
12.00
Output Value wie
Specialization
Output Value w/
Specialization
a.
Complete entries in the table above.
Which nation should specialize in chairs? How about tables? Explain your answer.
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