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11 July, 07:51

A farmer in Country A can harvest 20 bushels of wheat or 10 bushels of corn in a day, while a farmer in Country B can harvest 8 bushels of wheat or 8 bushels of corn in a day. If Country A and Country B specialize and trade, Country A will

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  1. 11 July, 08:13
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    Country A wll specialize in wheat and country B in corn

    Step-by-step explanation:

    When countries specialize and trade, they focus on what they can do better than other countries, so they can maximize production, and get scale economies working in their most efficient sectors

    In this case, for country A they can harvest 20 bushes of wheat or 10 bushes of corn, so the relationsihp is that they can produce 2 bushes of wheat/1 bushes of corn

    On the other side, country B can harvest 8 bushes of wheat or 8 bushels of corn, so the relationship 1 bushe of wheat / 1 bush of corn.

    Therefore, country A is 2 times more efficient than country B in producing Wheat, so it will specialize and trade Wheat. On the other side, as for country B they can harvest the same amount of corn or wheat, t means that they are better than country A on corn, so they will specialize and trade corn.

    In conclsuion, country A will specialize and harvest 20 bushes of wheat/day, and country B in corn, harvesting 8 bushes / day.
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