Kneebonia imports grain from Elbonia, and Elbonia imports steel from Kneebonia. Which of the following would be most consistent with this? Elbonia has an opportunity cost of producing one ton of grain equal to 3 tons of steel, and Kneebonia has an opportunity cost of one ton of grain equal to 2 tons of steel. Elbonia has an opportunity cost of producing one ton of grain equal to 2 tons of steel, and Kneebonia has an opportunity cost of one ton of grain equal to 3 tons of steel. Both Elbonia and Kneebonia have identical PPFS.

Kneebonia imports grain from Elbonia, and Elbonia imports steel from Kneebonia. Which of the following would be most consistent with this? Elbonia has an opportunity cost of producing one ton of grain equal to 3 tons of steel, and Kneebonia has an opportunity cost of one ton of grain equal to 2 tons of steel. Elbonia has an opportunity cost of producing one ton of grain equal to 2 tons of steel, and Kneebonia has an opportunity cost of one ton of grain equal to 3 tons of steel. Both Elbonia and Kneebonia have identical PPFS.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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