Country X and country Y each allocate half of their resources towards the manufacturing of shoes, and the other half towards the manufacturing of t-shirts. Resources can be used equally effectively in the production of both products in both countries.
The table shows the output of shoes and t-shirts produced by both countries using half their resources in each case, before specialisation.
What can be concluded from the data?
1 )
The opportunity cost of country Y producing two shoes is four t-shirts.
2 )
The opportunity cost of country X producing one t-shirt is four shoes.
The total output of shoes and t-shirts after specialisation would be 24000.
4 )
The total output of shoes and t-shirts after specialisation would be 28000.
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