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.

1 answer

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.