Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Business Statistics

Authors: Ronald M. Weiers

7th Edition

978-0538452175, 538452196, 053845217X, 2900538452198, 978-1111524081

Students also viewed these Economics questions

Question

1. Pupils can be trusted to work together without supervision.

Answered: 1 week ago