In Artland the opportunity cost of producing 1 ton of wheat is 2 tons of corn, while in Scienceland, the opportunity cost of producing 2 tons of wheat is 3 tons of corn.Both countries would be better off if:
A) Artland sells 4 tons of wheat to Scienceland in return for 7 tons of corn.
B) Artland sells 4 tons of wheat to Scienceland in return for 10 tons of corn.
C) Scienceland sells 4 tons of wheat to Artland in return for 7 tons of corn.
D) Scienceland sells 4 tons of wheat to Artland in return for 4 tons of corn.
E) No trade takes place.
Correct Answer:
Verified
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