absolute comparative adv?
Having a hard time figuring this out..
US: Hamburgers and Tacos (in tons)
H: 0,40,80,120
T: 108,72,36,0
Mex:
H: 0,4,8,12
T: 60,40,20,0
Suppose the US is producing 80 tons of H and 36 tons of T while Mex is producing 8 tons of H and 20 tons of T.
Question asks if US and Mex each specialize in producing only 1 good, then a total of __ additional H can be produced for the 2 countries combined and a total of __ additional tons of tacos can be produced.
The answers are 32 and 4 respectively...but I'm having a hard time figuring out how they got to that answer.
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Verified answer
Currently:
H = 80(US) + 8 (MX) = 88
T = 36(US) + 20(MX) = 56
Output after specialization:
H(US) = 120
T(MX) = 60
Additional Hamburgers after specialization: = 120 - 88 = +32
Additional Tacos after specialization: = 60 - 56 = +4
Hamburgers MAX output: H = 120(US) + 12(MX) = 132
Additional possible MAX Hamburgers = 132-88 = 44
OR
Tacos MAX output: T = 108(US) + 60(MX) = 168
Additional possible MAX tacos = 168-56 = 112