A Country Produces and Consumes Eight Units of Sugar Cane

Multiple Choice

A country produces and consumes eight units of sugar cane costing $50 per unit and two iPods that cost $200 each. After specialization and trade, that country consumes eight units of sugar cane and four iPods. With 24 units of labor, what are wages in this country?

A) $33.33 without trade and $50 with trade
B) $50 without trade and $75 with trade
C) $50 without trade and $33.33 with trade
D) $33.33 without trade and $75 with trade