Suppose that Country A's no-trade PPF is y = -2x + 40 and Country B's no-trade PPF is y= -x +30, and that both countries have the same amount of labor. Assuming that trade is now permitted between the two countries, is there a trade (with feasible trade price and trade quantities) that allows Country A to attain the bundle (10,22)?
Suppose that Country A's no-trade PPF is y = -2x + 40 and Country B's no-trade PPF is y= -x +30, and that both countries have the same amount of labor. Assuming that trade is now permitted between the two countries, is there a trade (with feasible trade price and trade quantities) that allows Country A to attain the bundle (10,22)?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose that Country A's no-trade
y= -x +30, and that both countries have the same amount of labor.
Assuming that trade is now permitted
between the two countries, is there a trade (with feasible trade price and trade quantities) that allows Country
A to attain the bundle (10,22)?
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