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Suppose two nations, Canada and Mexico, produce coolers and radios subject to the following production possibilities frontiers: Mexico Coolers 100 Radios 40 Canada Coolers 175
Suppose two nations, Canada and Mexico, produce coolers and radios subject to the following production possibilities frontiers: Mexico Coolers 100 Radios 40 Canada Coolers 175 Radios 50 Assuming these nations specialize and trade, which of the following terms of trade would be mutually beneficial? a) 1 radio per 1 coolers b) 1 radio per 2 coolers c) 1 radio per 3 coolers d) 1 radio per 4 coolers
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