Amount of good produced with one hour of labor Pounds of Fish Pounds of Coconuts

Question

Amount of good produced with one hour of labor Pounds of Fish Pounds of Coconuts Total Labor hours available Ricardo 6 2 8 Smith 6 4 8 Suppose Smith and Ricardo specialize in the task in which theyhave they comparative advantage. What is theit total output of eachgood now? thanks :) Amount of good produced with one hour of labor Pounds of Fish Pounds of Coconuts Total Labor hours available Ricardo 6 2 8 Smith 6 4 8 Suppose Smith and Ricardo specialize in the task in which theyhave they comparative advantage. What is theit total output of eachgood now? thanks :) Amount of good produced with one hour of labor Pounds of Fish Pounds of Coconuts Total Labor hours available Ricardo 6 2 8 Smith 6 4 8

Explanation / Answer

For Ricardo, 1 lb of coconuts is worth 3 lbs of fish. For Smith, 1 lb of coconuts is worth 1.5 lbs of fish. Since Ricardo produces fewer coconuts per fish, he will producefish, and Smith will produce coconuts. Thus, Ricardo willproduce 8*6 = 48 lbs of fish and Smith will produce 8*4 = 32 lbs ofcoconuts.

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