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e-lub [12.9K]
3 years ago
14

Argentina can produce either 20 units of cloth or 2 units of wine, while Chile can produce either 24 units of cloth or 12 units

of wine. If each country specializes in the good for which it has comparative advantage, the total output by the two countries will be:
Business
1 answer:
Olenka [21]3 years ago
7 0

Answer:

Their combined production should be 20 clothes and 12 wines.

Explanation:

<u>Argentina's opportunity cost to produce 1 unit of cloth = 0.1 wine</u>

Argentina's opportunity cost to produce 1 unit of wine = 10 clothes

Chile's opportunity cost to produce 1 unit of cloth = 0.5 wine

<u>Chile's opportunity cost to produce 1 unit of wine = 2 clothes</u>

Since Argentina' opportunity cost to produce clothes is lower, then it should specialize int he production of clothes. While Chile should specialize in the production of wine. Their combined production should be 20 clothes and 12 wines.

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Answer:

D

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Explanation:

4 0
3 years ago
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A standard definition of the economy might describe economics as a social science focused on meeting needs and desires through the allocation of scarce resources with alternative uses. Going further, we can say that economy is the study of scarcity and choice. The economy is defined as the management of financial matters in communities, businesses, or families. An example of an economy is the US stock exchange system.

Learn more about the economy here: brainly.com/question/1106682

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