Question
With one unit of production (a mixture of land, labor, capital, and technology) China can produce 10 TVs or 8 tons of iron-ore, whereas, Australia
With one unit of production (a mixture of land, labor, capital, and technology) China can produce 10 TVs or 8 tons of iron-ore, whereas, Australia can produce 6 TVs or 12 tons of iron-ore. Each country dedicates a total of 1000 units of production for TVs and iron-ore. If China and Australia decide to specialize in the production of TVs and iron-ore, what is the total amount of TVs and iron-ore that will be produced?
a)19,200 TVs and 16,000 tons of iron-ore
b)20,000 TVs and 24,000 tons of iron-ore
c)13,200 TVs and 24,000 tons of iron-ore
d)10,000 TVs and 12,000 tons of iron-ore
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