In country A, if all resources are allocated to only one commodity, either 1000 barrels of oil or 1000 tons of wheat can be produced. In country B, if all resources are allocated to only one commodity, either 3000 barrels of oil or 1500 tons of wheat can be produced. In both countries the marginal rate of transformation is constant.

a.) in the absence of trade what will be the ratio of the price of oil to the price of wheat in each country?

b.) If trade is permitted (at zero transportation costs), which country will export which commodity and within what range will the terms of trade end up?

c.) Which country will potentially gain from trade; A, B, or both A and B?