Two countries each produce only pork and apples. Peru can produce either 25 thousand pounds of pork or 50 thousand pounds of apples per year. Nicaragua can produce either 20 thousand pounds of pork or 80 thousand pounds of apples per year. Suppose the countries completely specialize and they decide to trade 8 thousand pounds of pork for 24 thousand pounds of apples. After trade, Peru can consume thousand pounds of pork and thousand pounds of apples. After trade, Nicaragua can consume thousand pounds of pork and thousand pounds of apples.

Two countries each produce only pork and apples. Peru can produce either 25 thousand pounds of pork or 50 thousand pounds of apples per year. Nicaragua can produce either 20 thousand pounds of pork or 80 thousand pounds of apples per year. Suppose the countries completely specialize and they decide to trade 8 thousand pounds of pork for 24 thousand pounds of apples. After trade, Peru can consume thousand pounds of pork and thousand pounds of apples. After trade, Nicaragua can consume thousand pounds of pork and thousand pounds of apples.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter2: Production Possibilities Frontier Framework

Section: Chapter Questions

Problem 9WNG

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