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 equipment produced. Below is the data for the maximum production of the only two products for the countries of Oz and Zas.32 food units 16 equipment units16 food units or 24 equipment unitsOz:Zas: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 twoproducts, what is the output in each country. Fill in the table below.CountryOzZasOutput of food Output of equipmentunitsunitsCountryOzZas168b. Based on part (a), total production of food is 24 units and total production of equipment isc. 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.812Output of food Output of equipmentunitsunits320024d. Now, based on part (c), total production of food ise. The gains as a result of specialization are20 units.units and total production of equipment ison ofmore units of food produced andunits.more units of equipment produced.

Given Maximum production of two goods for the countries of Oz and Zas Food Equipment Oz 32…

Answered: Now, based on part (C), total…

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 equipment produced.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

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 equipment produced.

Below is the data for the maximum production of the only two products for the countries of Oz and Zas.
32 food units 16 equipment units
16 food units or 24 equipment units
Oz:
Zas:
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
Oz
Zas
Output of food Output of equipment
units
units
Country
Oz
Zas
16
8
b. Based on part (a), total production of food is 24 units and total production of equipment is
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.
8
12
Output of food Output of equipment
units
units
32
0
0
24
d. Now, based on part (c), total production of food is
e. The gains as a result of specialization are
20 units.
units and total production of equipment is
on of
more units of food produced and
units.
more units of equipment produced.

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