In a day, Julia can produce 12 bushels of wheat or 4 pounds of meat while Carlos can produce 10 bushels of wheat or 2 pounds of meat. If Julia and Carlos work for a day producing what they have comparative advantage in, which of the following price (P) ranges for a bushel of wheat in terms of pounds of meat incentivize both Julia and Carlos to trade with each other A 0.20 < P < 0.33 B 3.00 < P < 5.00 C 1.20 < P < 2.00 D 2.50 < P < 6.00
In a day, Julia can produce 12 bushels of wheat or 4 pounds of meat while Carlos can produce 10 bushels of wheat or 2 pounds of meat. If Julia and Carlos work for a day producing what they have comparative advantage in, which of the following price (P) ranges for a bushel of wheat in terms of pounds of meat incentivize both Julia and Carlos to trade with each other A 0.20 < P < 0.33 B 3.00 < P < 5.00 C 1.20 < P < 2.00 D 2.50 < P < 6.00
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter3: Interdependence And The Gains From Trade
Section: Chapter Questions
Problem 5PA
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In a day, Julia can produce 12 bushels of wheat or 4 pounds of meat while Carlos can produce 10 bushels of wheat or 2 pounds of meat. If Julia and Carlos work for a day producing what they have
A 0.20 < P < 0.33 |
||
B |
3.00 < P < 5.00 |
|
C |
1.20 < P < 2.00 |
|
D |
2.50 < P < 6.00 |
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