-Exhibit EE-2 depicts the production possibilities curves of wheat and corn for Nabia and Pada. What is the most corn Pada would be willing to trade for one unit of Nabia's wheat?

Question

Quizplus · Accepted Answer

Pada's opportunity cost of producing one unit of wheat is 3 units of corn, while Nabia's opportunity cost of producing one unit of wheat is 4 units of corn. Therefore, Pada would be willing to trade at most 1/3 of a unit of corn for one unit of Nabia's wheat.

-Exhibit EE-2 Depicts the Production Possibilities Curves of Wheat and Corn