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Assume that one day's labor (one unit of labor = one day of labor) in Argentina can produce either 20 units of cloth or 2

Assume that one day's labor (one unit of labor = one day of labor) in Argentina can produce either 20 units of cloth or 2 units of wine, while in Chile one day's labor can produce either 24 units of cloth or 12 units of wine. If Argentina transfers 2 units of labor from wine to cloth and Chile transfers 1 unit of labor from cloth to wine, the increase in combined output by those two workers will be:

a.

16 wine; 8 cloths

b.

16 wine; 16 cloths

c.

12 wine; 12 cloths

d.

8 wine; 16 cloths

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