Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. If both Amy and Mike produce the good in which they have comparative advantage, the total annual output of this economy will be ________.

A. 30 cars
B. 10,000 pounds of cheese and 30 cars
C. 5,000 pounds of cheese and 20 cars
D. 10,000 pounds of cheese

Answer: C

Economics

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