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Suppose both countries specialize in producing the goods that they have comparative advantage and trade with each other. The terms of trade is 150 cars
- Suppose both countries specialize in producing the goods that they have comparative advantage and trade with each other. The terms of trade is 150 cars trade for 400 computers. Please fill in the following table. (9 points)
Please provide solutions on how you got it.
| Canada | Russia | |||
| cars | computers | cars | computers | |
| Without trade | ||||
| production | 200 | |||
| consumption | 100 | |||
| With trade | ||||
| production | ||||
| consumption | ||||
| Gains from trade |
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Quality Of The Environment An Economic Approach To Some Problems In Using Land, Water, And Air
Authors: Orris C Herfindahl, Allen V Kneese
1st Edition
1317386663, 9781317386667
