Below is the data for the maximum production of the only two products for the countries of Oz and Zas. Oz: 14 food units 22 equipment units Zas: 26 food units or 14 equipment units a. If each country is self-sufficient, with no trade between them, and each uses one-half of their resources to produce each of the two products, what is the output in each country. Fill in the table below. Country Output of food units Output of equipment units Oz Zas b. Based on part (a), total production of food is units and total production of equipment is units c. If, instead, each country specializes and produces only the product that it can produce best, what will be the output in each country? Fill in the table below. Country Output of food units Output of equipment units Oz Zas
Below is the data for the maximum production of the only two products for the countries of Oz and Zas.
Oz: 14 food units 22 equipment units
Zas: 26 food units or 14 equipment units
a. If each country is self-sufficient, with no trade between them, and each uses one-half of their resources to produce each of the two products, what is the output in each country. Fill in the table below.
Country Output of food units Output of equipment units
Oz
Zas
b. Based on part (a), total production of food is units and total production of equipment is units
c. If, instead, each country specializes and produces only the product that it can produce best, what will be the output in each country? Fill in the table below.
Country Output of food units Output of equipment units
Oz
Zas
d. Now, based on part (c), total production of food is _____ units and total production of equipment is ____units.
e. The gains as a result of specialization are ___ more units of food produced and _____more units of equipment produced.
Step by step
Solved in 2 steps
