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With 24 Units of Labor and No Trade Brazil Produces

Question 165

Multiple Choice

With 24 units of labor and no trade Brazil produces and consumes eight units of sugar cane and two iPods. Sugar cane costs $50/unit, and iPods cost $200. After specialization and trade, Brazil consumes eight units of sugar cane and four iPods. What are wages in Brazil?


A) $33 without trade and $50 with trade
B) $50 without trade and $75 with trade
C) $50 without trade and $33 with trade
D) $33 without trade and $75 with trade

Correct Answer:

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