2. Suppose that the comparative-cost ratios of two productsmangoes and sardinesare as follows in the hypothetical nations

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2. Suppose that the comparative-cost ratios of two products—mangoes and sardines—are as follows in the hypothetical nations of Mangolia and Sardinia:

Mangolia: 1 mango = 2 cans of sardines Sardinia: 1 mango = 4 cans of sardines In what product should each nation specialize?
Explain why the terms of trade of 1 mango = 3 cans of sardines would be acceptable to both nations.

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Principles Of Microeconomics

ISBN: 9780393679199

3rd Edition

Authors: Dirk Mateer, Lee Coppock

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Question Posted: Oct 21, 2024 01:00 AM

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2. Suppose that the comparative-cost ratios of two productsmangoes and sardinesare as follows in the hypothetical nations

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Principles Of Microeconomics

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