Question
Assume Trina and Hitoshi have linear PPCs with the following points. All Apples (no Tomatoes) All Tomatoes (no Apples) Trina 8 4 Hitoshi 6 6
Assume Trina and Hitoshi have linear PPCs with the following points.
All Apples (no Tomatoes) | All Tomatoes (no Apples) | |
Trina | 8 | 4 |
Hitoshi | 6 | 6 |
Suppose without trade Trina would choose to produce 4 apples and 2 tomatoes while Hitoshi would choose to make 3 apples and 3 tomatoes. If each then specialized in the production of their comparative advantage good, which of the following trades would cause BOTH individuals to end up with more of BOTH goods than they would get without trade?
a) 5 apples for 2.5 tomatoes
b) 4 apples for 2 tomatoes
c) 3 apples for 3 tomatoes
d) 5 apples for 3.5 tomatoes
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