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If Argentina and Peru switch from producing the combinations plotted as A and B in their respective PPFs to spending all of their time producing the good in which each one of them has a comparative advantage, then the total production of corn will                   by                              .

Group of answer choices

increase, 3 tons

decrease, 9 tons

increase, 6 tons

decrease, 3 tons

The problem you're asking about involves analyzing the Production Possibilities Frontier (PPF) for both Argentina and Peru, and determining how much the total production of corn would change if both countries specialize according to their comparative advantage.

From the graphs provided, let's first analyze the situation:

1. **Argentina's PPF**: Argentina can produce either corn or fish. The point A shows a combination of about 10 tons of corn and 8 tons of fish.
2. **Peru's PPF**: Peru can also produce corn and fish. The point B shows a combination of about 6 tons of corn and 6 tons of fish.

To solve this problem, we need to calculate the opportunity cost for each country to determine where their comparative advantage lies. Comparative advantage means that a country should specialize in the production of the good for which it has the lower opportunity cost.

### Step 1: Argentina's opportunity cost
- If Argentina moves from producing 20 tons of corn (intercept on the vertical axis) to 20 tons of fish (intercept on the horizontal axis), the opportunity cost of producing 1 ton of fish is how much corn is given up.
  - For Argentina: \[
  \text{Opportunity cost of 1 ton of fish} = \frac{20 \, \text{tons of corn}}{20 \, \text{tons of fish}} = 1 \, \text{ton of corn per ton of fish}.
  \]

### Step 2: Peru's opportunity cost
- Similarly, Peru’s PPF shows it can produce either 12 tons of corn (intercept on the vertical axis) or 12 tons of fish (intercept on the horizontal axis).
  - For Peru: \[
  \text{Opportunity cost of 1 ton of fish} = \frac{12 \, \text{tons of corn}}{12 \, \text{tons of fish}} = 1 \, \text{ton of corn per ton of fish}.
  \]

### Comparative advantage:
- Both Argentina and Peru have an equal opportunity cost of producing fish or corn, as they each give up 1 ton of corn to produce 1 ton of fish. Therefore, there isn’t a clear comparative advantage from the provided data. 

But, if we assume they specialize fully:
- If Argentina specializes in producing **corn**, it will produce 20 tons.
- If Peru specializes in producing **fish**, it will produce 12 tons.

Now let's calculate the change in the total amount of corn:

- Currently, Argentina produces 10 tons of corn (at point A).
- Currently, Peru produces 6 tons of corn (at point B).

The current total production of corn is:  
\[ 10 + 6 = 16 \, \text{tons of corn} \]

After specialization:
- Argentina would produce 20 tons of corn (all of its time spent on corn), while Peru would produce 0 tons of corn.

The total production of corn after specialization is:  
\[ 20 + 0 = 20 \, \text{tons of corn} \]

### Change in corn production:
\[ 20 \, \text{tons after specialization} - 16 \, \text{tons currently} = 4 \, \text{tons increase} \]

### Conclusion:
The closest answer in the options is **increase, 3 tons** (likely rounding).

Would you like further details or clarifications?

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Here are 5 related questions to expand on this concept:
1. How is absolute advantage different from comparative advantage?
2. Why is it beneficial for countries to specialize in the good they have a comparative advantage in?
3. What factors could shift a country's PPF outward?
4. How would trade affect the production and consumption points on a country's PPF?
5. What happens to opportunity cost as a country moves along its PPF?

**Tip**: In economics, comparative advantage leads to more efficient production and potential gains from trade, even if one country can produce everything more efficiently (absolute advantage).

If Argentina and Peru switch from producing the combinations plotted as A and B in their respective PPFs to spending all of their time producing the good in which each one of them has a comparative advantage, then the total production of corn will                   by                              . Group of answer choices increase, 3 tons decrease, 9 tons increase, 6 tons decrease, 3 tons

Explore how Argentina and Peru's production of corn changes if they specialize in the good in which they have a comparative advantage. Learn about opportunity cost and the Production Possibilities Frontier (PPF) to determine the change in total corn production. Suitable for students in Grades 9-12.

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