Table 3-23 Assume That the Farmer and the Rancher Can Switch Between

question 71

Multiple Choice

Table 3-23
Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate.
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-Refer to Table 3-23. Without trade, the farmer produced and consumed 2 pounds of pork and 4 pounds of tomatoes and the rancher produced and consumed 4 pounds of pork and 2 pounds of tomatoes. Then, each person agreed to specialize in the production of the good in which he has a comparative advantage and trade 4 pounds of pork for 6 pounds of tomatoes. As a result,

• A)the farmer gained 3 hours worth of production and the rancher gained 4 hours worth of production.
• B)the farmer gained 4 hours worth of production and the rancher gained 6 hours worth of production.
• C)the farmer gained 6 hours worth of production and the rancher gained 8 hours worth of production.
• D)the farmer gained 8 hours worth of production and the rancher gained 10 hours worth of production.

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