Assume that the comparative-cost ratios of two products—

baby formula and tuna fish—are as follows in the nations of Canswicki and Tunata:

Canswicki: 1 can baby formula ; 2 cans tuna fish Tunata: 1 can baby formula ; 4 cans tuna fish In what product should each nation specialize? Which of the following terms of trade would be acceptable to both nations:

( a ) 1 can baby formula ; 212 cans tuna fish; (

b) 1 can baby formula ; 1 can tuna fish; ( c ) 1 can baby formula ; 5 cans tuna fish? LO2