Business, 29.01.2020 05:46 19brendaddavenport
Suppose kent and auburn both produce only food and clothing. they each have the following production possibilities functions:
kent: food = 6-(2/3) clothing
auburn: food = 8- (4/3) clothing
under what situation would trade not occur between these 2 countries?
a. the term of trade is 1 food for 0.8 clothing.
b. the term of trade is 1 food for 0.5 clothing.
c. the term of trade is 1 food for 1.25 clothing.
d. the term of trade is 1 food for 1.33 clothing.
Answers: 1
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