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Suppose country oakland has 1 0 0 cats, while country Midland has 1 1 0 tvs . They agree to trade 4 5 cars for
Suppose country oakland has cats, while country Midland has tvs They agree to trade cars for tv sets. Which assumption guarantees that the post trade consumption bundle increases utility for both?
Expectations of a future relationship between the two countries.
Scarcity of goods within a country.
Diminishing marginal utility from repeated consumption of the same good.
Uncertainty about quality of the other product.
Government policies ensure that the overall benefits are positive
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