Multiple Choice
You are the Minister of Trade for a small island country in the South Pacific with the following annual production possibilities curve: 
You are negotiating a deal with a neighboring island that has the following annual PPC: 
Refer to the figure above. Both islands specialize exclusively in the product for which they have a comparative advantage. You have agreed to sell the other island 350 coconuts in exchange for 1,300 fish. After the trade the other island has a total of _____ coconuts and _____ fish.
A) 850; 1,200
B) 500; 1,200
C) 350; 1,500
D) 350; 1,200
Correct Answer:
Verified
Correct Answer:
Verified
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