Math  /  Data & Statistics

QuestionToble 3-11 Assume that Jamaica and Norway can switch between producing coolers and producing radios at a constant rate. Output Produced in One Day \begin{tabular}{|l|c|c|} \hline & Coolers & Radios \\ \hline Jamaica & 12 & 6 \\ \hline Norway & 24 & 3 \\ \hline \end{tabular}
Refer to Table 3-11. Assume that Jamaica and Norway each has 4 days available for production. Originally, each country divided its time equally between the production of coolers and radios. Now, each country spends all its time producing the good in which it has a comparative advantage. As a result, the total output of radios increased by a. 12 . b. 9 . c. 6. d. 3 .

Studdy Solution
Calculate the total output of radios before and after specialization and determine the increase.
Initial total output of radios=12 radios (Jamaica)+6 radios (Norway)=18 radios\text{Initial total output of radios} = 12 \text{ radios (Jamaica)} + 6 \text{ radios (Norway)} = 18 \text{ radios}
Total output of radios after specialization=24 radios (Jamaica)+0 radios (Norway)=24 radios\text{Total output of radios after specialization} = 24 \text{ radios (Jamaica)} + 0 \text{ radios (Norway)} = 24 \text{ radios}
Increase in total output of radios=24 radios18 radios=6 radios\text{Increase in total output of radios} = 24 \text{ radios} - 18 \text{ radios} = 6 \text{ radios}
The total output of radios increased by 6\boxed{6}.

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