The island nation of Sonorez produces 200 tons of wheat and 500 tons of corn. Munisia, its neighboring country, produces 400 tons of wheat and corn each. Sonorez would like to consume another 80 tons of wheat and is willing to give up a 100 tons of corn for it. Munisia on the other hand would like an extra 50 tons of corn and is willing to give up 100 tons of wheat. Which of the following
conclusions can be drawn from this?
a. The 2 countries will not trade because they will not come to a common bargain.
b. Sonorez will trade 100 tons of wheat for extra corn.
c. Munisia will trade 100 tons of corn for extra wheat.
d. Sonorez will trade 50 - 100 tons of corn with Munisia for 80 - 100 tons of wheat.
D
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Which of the following is NOT a direct determining factor of consumers' purchase decisions?
A) Consumers' tastes and preferences B) Market price of the finished goods C) Cost of factor inputs D) Consumers' income
For the practice of price discrimination to be successful, the monopoly must
a. face an imperfect resale market for its product. b. face similar demand curves for various markets. c. have similar costs among markets. d. have a downward sloping marginal cost curve.