(Figure: The Production Possibility Frontiers for Kansas and Wisconsin) Use Figure: The Production Possibility Frontiers for Kansas and Wisconsin, In autarky, Kansas produces and consumes 30 gallons of milk and 80 bushels of corn, while Wisconsin produces and consumes 80 gallons of milk and 60 bushels of corn. If the two states engage in trade, with cach state specializing in the good in which it has a comparative advantage, world production of milk will: Kansas Wisconsin Com Corn (bushels) (bushels) 225 225 200 175 200 175 150 150 125 125 100 100 75 75 50 50 25- 25 25 50 75 100 125 150 175 200 25 50 75 100 125 150 175 200 MIlk (gallons) MILK (gallons) decrease by 30 gallons. increase by 90 gallons. increase by 120 gallons. remain constant.

(Figure: The Production Possibility Frontiers for Kansas and Wisconsin) Use Figure: The Production Possibility Frontiers for Kansas and Wisconsin, In autarky, Kansas produces and consumes 30 gallons of milk and 80 bushels of corn, while Wisconsin produces and consumes 80 gallons of milk and 60 bushels of corn. If the two states engage in trade, with cach state specializing in the good in which it has a comparative advantage, world production of milk will: Kansas Wisconsin Com Corn (bushels) (bushels) 225 225 200 175 200 175 150 150 125 125 100 100 75 75 50 50 25- 25 25 50 75 100 125 150 175 200 25 50 75 100 125 150 175 200 MIlk (gallons) MILK (gallons) decrease by 30 gallons. increase by 90 gallons. increase by 120 gallons. remain constant.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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