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Choose the one alternative that best completes the statement or answers the question. Cloth Widgets Home 10 20 Foreign 60 30 Given the information in
Choose the one alternative that best completes the statement or answers the question.
Cloth | Widgets | |
---|---|---|
Home | 10 | 20 |
Foreign | 60 | 30 |
Given the information in the table above, if the world equilibrium price of cloth were 1 cloth, then:
a.
both countries could benefit from trade with each other.
b.
neither country could benefit from trade with each other.
c.
each country will want to export the good in which it enjoys comparative advantage.
d.
neither country will want to export the good in which it enjoys comparative advantage.
e.
both countries will want to specialize in cloth.
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