Use the Following Information to Answer the Next Three Questions

Suppose Mars needs 24 million Martians to produce 1 starship per year and it needs 4 million workers to make 1 trillion tons of food per year.

Venus only needs 2 million Venusians to make a starship and 2 million workers to make a trillion tons of food.

Suppose each planet has 48 million people and dedicates half of workers to each sector.

The most the Martians can produce without trade is 2 starships or 12 trillion tons of food.

The most the Venusians can produce without trade is 24 starships or 24 trillion tons of food.

• Suppose that Martians specialize in making food and produce 12 trillion tons per year and the Venusians specialize in starships and make 14 starships per year and 10 trillion tons of food. Suppose further that the Venusians trade 1 starship for 3 trillion tons of food.

Part A: How much richer does this trade make the Galaxy?

Part B: Assume that starships sell for $3 trillion apiece on the Galactic Market. Suppose that a trillion tons of food sells for $1 trillion. What is the average wage of workers on each planet before trade? Remember, your "wage" is your consumption or output divided by how much work is done to secure it.

• If you computed the average salary on Mars after trade you would find it grew to $250,000. If you computed the average salary for the Venusians after trade you would find it grew to $1,083,333. In what sense did the Venusians get the better deal? In what sense did the Martians get the better deal?