Question
Lesotho produces 4 tons of wool per hour, and 3 tons of beef per hour. Botswana produces 1 ton of wool per hour, and 2
Lesotho produces 4 tons of wool per hour, and 3 tons of beef per hour. Botswana produces 1 ton of wool per hour, and 2 tons of beef per hour.
If Lesotho exchanges 4W for 4B with Botswana
( a) how much does Lesotho gain in terms of beef?
(b) How much does Botswana gain in terms of beef?
(c) What is the range of mutually beneficial trade?
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Macroeconomics
Authors: Charles I. Jones
3rd edition
978-0393123944, 393123944, 393923908, 978-0393923902
