Suppose that in Columbia, one unit of labor can produce 4 tons of papayas or 2 t

Question

Suppose that in Columbia, one unit of labor can produce 4 tons of papayas or 2 tons of bananas, while in Brazil one unit of labor can produce either 2 tons of papayas or 4 tons of bananas. If each country has 2 units of labor, which of the following consumption combinations can be attained only with specialization and trade?

A. Brazil consumes 8 tons of bananas and no papayas.

B. Columbia consumes 8 tons of papayas and no bananas.

C. Columbia consumes 4 tons of papayas and 4 tons of bananas.

D. Brazil consumes 2 tons of papayas and 4 tons of bananas.

Explanation / Answer

C. Columbia consumes 4 tons of papayas and 4 tons of bananas.

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