Below is the question. If anyone can help explain how to solve this in a simple

Question

Below is the question. If anyone can help explain how to solve this in a simple way that would be great!

Suppose that a worker in Radioland can produce either 4 radios or 1 television per year, and a worker inTeeveeland can produce either 2 radios or 4 televisions per year. Each nation has 100 workers. Also supposethat each country completely specializes in producing the good in which it has a comparative advantage. If Radioland trades 100 radios to Teeveeland in exchange for 100 televisions each year, then each country'smaximum consumption of new radios and televisions per year will be:

Explanation / Answer

Radioland produce 4*100 = 400 radios

Teeveeland produce 4*100 = 400 TVs

If Teeveeland produces only Teevees and radioland only radios (I think this is what he question suggests by "Also supposethat each country completely specializes in producing the good in which it has a comparative advantage") then Answer is as follows

Hence max consumption of Radioland = 300 radios + 100TVs

Hence max consumption of Teeveeland = 100 radios + 300TVs

If each item's max is taken separately ie anyone can manufacture anything, then:

Max TV consumption of radioland = 100 + (100-100/4)*1 = 175

Max radio consumption of radioland = -100 + (100-0/4)*4 = 300

Max TV consumption of Teeveeland = -100 + (100-0/4)*4 = 305

Max radio consumption of Teeveeland = +100 + (100-100/4)*2 = 250

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