Question
Q13. Assume the following information about U.S. and Switzerland for the production of cases of IPods and fine handmade watches. With one unit of production
Q13. Assume the following information about U.S. and Switzerland for the production of cases of IPods and fine handmade watches. With one unit of production (a mixture of land, labor, capital, and technology) the U.S. can produce 12 cases of IPods or 8 handmade watches. Switzerland can produce 8 cases of IPods or 12 handmade watches with each unit of production. Each country dedicates a total of 1000 units of production for IPods and watches. This information is reproduced in the following table. Country IPods (Cases) Hand Crafted Watches U.S. 12 8 Switzerland 8 12 If U.S. and Switzerland decide to specialize in the production of IPods and watches, what is the total amount of IPods and watches that will be produced? a. 9,600 cases of IPods and 8,000 watches b. 12,000 cases of IPods and 12,000 watches c. 12,000 cases of IPods and 10,000 watches d. 6,600 cases of IPods and 12,000 watches
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