Multiple Choice
Table 3-34
Assume that Indonesia and India can switch between producing rice and bananas at a constant rate.
-Refer to Table 3-34. At which of the following prices, if any, can India and Indonesia both gain from trade?
A) 1/5 units of bananas per unit of rice.
B) 1/3 units of bananas per unit of rice.
C) 3/5 units of bananas per unit of rice.
D) None of the above.
Correct Answer:

Verified
Correct Answer:
Verified
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