Karl can produce either 10 tons of oranges or 5 tons of apples in a year, while Adam can produce either 5 tons of oranges or 10 tons of apples. Which of the following would be mutually beneficial terms of trade between Karl and Adam?
a. 1 ton of apples per 2 1/2 tons of oranges
b. 1 ton of apples per 1 1/2 tons of oranges
c. 1 ton of apples per 1/4 ton of oranges
d. 1 ton of apples per 1/5 ton of oranges
b
Economics
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What is it and what advantage does it offer firms?
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