Coffee and Cheese Exchange in a POW Camp.

Suppose that in the British compound of a POW camp, the price of cheese is 6 cigarettes per cheese ration and the price of coffee beans is 3 cigarettes per coffee ration. In the French compound, the price of coffee beans is 24 cigarettes per ration.

a. Is there an opportunity for beneficial exchange?

b. A British prisoner could exchange his cheese ration for __________cigarettes, then exchange the extra cigarettes for __________coffee rations in the British compound. If he travels to the French compound, he could exchange the extra coffee for __________cigarettes. When he returns to the British compound, he can exchange the extra cigarettes for cheese rations. In other words, his net gain from trade is__________ cheese rations.