Question

Table 3-5. Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate.
Labor Hours Needed to Make 1
Cooler Radios
Aruba 2 5
Iceland 1 4


Refer to Table 3-5. Assume that Aruba and Iceland each has 80 labor hours available. If each country divides its time equally between the production of coolers and radios, then total production is
a.

28 coolers and 50 radios.
b.

30 coolers and 9 radios.
c.

60 coolers and 18 radios.
d.

120 coolers and 36 radios.

Answer 1

To determine the total production of coolers and radios if both Aruba and Iceland divide their labor hours equally between the two products, we need to calculate the production for each country based on their labor hours and the labor hours needed to produce each item.

### Step 1: Calculate labor hours used by each country

Each country has 80 labor hours available and divides it equally between making coolers and radios. This means each country will allocate:

- 80 hours / 2 = 40 hours for coolers
- 80 hours / 2 = 40 hours for radios

### Step 2: Calculate production for Aruba

**Aruba:**
- Labor hours needed to make 1 cooler: 2 hours
- Labor hours needed to make 1 radio: 5 hours

**For coolers:**
- Total coolers produced by Aruba = 40 hours / 2 hours per cooler = 20 coolers

**For radios:**
- Total radios produced by Aruba = 40 hours / 5 hours per radio = 8 radios

### Step 3: Calculate production for Iceland

**Iceland:**
- Labor hours needed to make 1 cooler: 1 hour
- Labor hours needed to make 1 radio: 4 hours

**For coolers:**
- Total coolers produced by Iceland = 40 hours / 1 hour per cooler = 40 coolers

**For radios:**
- Total radios produced by Iceland = 40 hours / 4 hours per radio = 10 radios

### Step 4: Total production of coolers and radios

**Total production:**
- Total coolers from Aruba = 20
- Total coolers from Iceland = 40
- Total coolers = 20 + 40 = 60 coolers

- Total radios from Aruba = 8
- Total radios from Iceland = 10
- Total radios = 8 + 10 = 18 radios

### Final Result

Thus, the total production is **60 coolers and 18 radios**.

The correct answer is:
**c. 60 coolers and 18 radios.**