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Suppose the production possibilities for two countries, producing either food or clothing, are shown ...

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Suppose the production possibilities for two countries, producing either food or clothing, are shown ...

Suppose the production possibilities for two countries, producing either food or clothing, are shown in the above figure. They can each produce any linear combination as well. If production occurs at the kink on the joint production possibility frontier,
A) the U.S. will specialize in food and Canada will specialize in clothing.
B) the U.S. will specialize in clothing and Canada will specialize in food.
C) each country will devote half of its resources to each industry.
D) joint output is minimized.

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Microeconomics

Edition: 6^th

Author: Perloff

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