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Need answer with clear explanation The countries of Boxtown and Boonton each produce two goods: Trucks and Motorbikes. The table below lists the yearly production
Need answer with clear explanation
The countries of Boxtown and Boonton each produce two goods: Trucks and Motorbikes. The table below lists the yearly production in millions of units associated with producing each good, for each country. Country Production of Trucks Production of Motorbikes Boxtown 20 80 Boouron 50 100 Currently. Boxtown does not trade with Boonton but the 2 countries are negotiating a free trade agreement. Based on the information above, Boxtown should specialize in OTrucks OMotorbikes No trade should take place and export to Boonton. Similarly, Boonton should specialize in OTrucks Motorbikes ONo trade should take place export to Boxtown.No trade should take place and export to Boonton. Similarly, Boonton should specialize in OTrucks OMotorbikes ONo trade should take place and export to Boxtown. After the 2 countries fully specialize and trade. Which combinations of the 2 goods after trade is achievable and beneficial for both countries? 020 Trucks and 150 Motorbikes for Boxtown 096 Trucks and 24 Motorbikes for Boxtown 0150 Trucks and 150 Motorbikes for BoontonStep by Step Solution
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