O his production possibilities frontier is bowedout Question

O his production possibilities frontier is bowed-out Question 10 10 pts Suppose that a worker in Boatland can produce either 5 units of wheat or 25 units of fish per year, and a worker in Farmland can produce either 25 units of wheat or 5 units of fish per year. There are 30 workers in each country. No trade occurs between the two countries. Boatland produces and consumes 75 units of wheat and 375 units of fish per year while Farmland produces and consumes 375 units of wheat and 75 units of fish per year. If trade were to occur. Boatland would trade 90 units of fish to Farmland in exchange for 80 units of wheat. If Boatland now completely specializes in fish production, how many units of fish could it now consume along with the 80 units of imported wheat? 500 units 610 units 490 units 660 units No new data to save, Last checked at 10:23pm Submit Q

Solution

If Boatland specializes in fish production and produces fish only then total production of fish by Boatland will be 25 fish x 30 = 750 fishes per year

Due to exchange of 90 fishes for 80 units of wheat

Boatland left with 750 - 90 = 660 fishes

and 80 wheat.

So, answer is 660 fishes.