A. Suppose that Susan and Tom could buy or sell coffee beans and nuts in the world market at a price of $2 per pound for coffee beans and $2 per pound for nuts. If each person specialized completely in the good for which he or she had a comparative advantage, how much could they earn by selling all they produce (Tom's earnings plus Susan's earnings)?

 Susan and Tom's total earnings after selling all they produce is $96

Explanation:

Comparative advantage is a term that refers to an economy's ability to produce goods and services at a lower opportunity cost compared to other trade partners. A person can have comparative advantage at producing something if he/she can produce it at lower cost than anyone else.

If each works 6 hours per day and if they both specialize according to their comparative advantage;

If they sell all they produce, in the world market, at a price of $2 per pound coffee beans and $2 per pound nuts, they can collectively earn;

answer; sensory adaptation;

answer; (c) communism and socialism;