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Suppose That a Worker in Country a Can Make Either

Question 115

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Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year.Country A has 200 workers.Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year.Country B has 400 workers.Suppose Country B decides to specialize in tomatoes,and Country A specializes in bananas.What terms of trade would both countries agree to? One tomato for:


A) one banana
B) two bananas
C) four bananas
D) six bananas

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