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The table below presents the total output FactoryA and Factory B can produce in one hour. Consider that Factory A and Factory B can switch
The table below presents the total output FactoryA and Factory B can produce in one hour. Consider that Factory A and Factory B can switch between producing couches and producing beds at a constant rate. Assume that factory Aand factory B each has a 4 hour production day. Originally, each factory divided its time equally between the production of couches and beds. Now, each factory spends all its time producing the good in which it has a comparative advantage. As a result, the total output of beds increased by 06 03 09 012
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