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Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers. What is the range of prices at which mutually beneficial trade can occur? Show your work clearly.

Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers. What is the range of prices at which mutually beneficial trade can occur? Show your work clearly.

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
Section: Chapter Questions
Problem 34P: Consider two countries: South Korea and Taiwan. Taiwan can produce one million mobile phones per day...
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3. Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers. What is the range of prices at which mutually beneficial trade can occur? Show your work clearly. 

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