I need full explanation in details , where did we get the numbers ( 12 and 10 )

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I need full explanation in details , where did we get the numbers ( 12 and 10 ) ? It says wheat production increase to 12 and cotton production to 10 ?! How ?? Why ? Where did we get the numbers 12 & 10 ? Illustration of Absolute Advantage As shown in table given below, before Thus, the US should specialize in the production of wheat and the UK in the production of cotton trade with one labor hour the US can produce 6 bushels of wheat and 4 bushels of cotton, whereas with theThe trade price of wheat will settle same amount of labor hour the UK can produce only 1 bushel of wheat and 5 0.2 bushels of wheat. bushels of cotton between 0.67 and 5 bushels of cotton and the trade price of cotton between 1.5 and Before trade the total production of wheat and cotton is: 7 bushels of wheat and 9 bushels of cotton. Thus, the opportunity cost (OC) of wheat in the US is 4/6-0.67 bushels of cotton whereas the OC of wheat in the UK is 5/1-5 bushels of cotton Wheat Cotton -On the other hand, the OC of cotton in the US is 6/41.5 bushels of wheat, whereasit US is 1/5 0.2 bushels of wheat in the UK. The US has absolute advantage in the production of wheat because its OC of wheat is lower (0.67 5), whereas the UK production has absolute advantage in the production of cotton as it has lower cost (0.21.5) 4 UK Total 7 Pearson Copyright © 2018 Pearson Education, Ltd. All rights reserved

Explanation / Answer

We are given that US produces,

6 bushels of wheat in 1 hour

4 bushels of cotton in 1 hour

Now considering that US seems to produce more quantity of wheat,so the US only produces wheat bushels i.e. all the labor and capital and capital available in the country is invested to produce wheat. Thus the labor and capital employed in the production of cotton will be devoted for the production of wheat. Hence if all labor are employed in wheat production, 2 hr of work (1 hour by wheat bushel producers and 1 hr by the cotton bushel producers) will produce 12 bushels of wheat.

Similarly in case of UK, considering the comparative advantage in cotton production if all resources are employed in cotton production than in total of 2 hours (1 hr by cotton producers and 1 hr by the wheat producers) a total of 10 bushels of cotton will be produced.

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