Macroeconomics 2nd Edition by Campbell McConnell ,Stanley Brue,Sean Flynn

تمرين 8

Assume that the comparative-cost ratios of two products-baby formula and tuna fish-are as follows in the nations of Canswicki and Tunata:
Canswicki: 1 can baby formula ? 2 cans tuna fish
Tunata: 1 can baby formula ? 4 cans tuna fish
In what product should each nation specialize? Which of the following terms of trade would be acceptable to both nations: (a) 1 can baby formula ? 2 1/2 cans tuna fish; (b) 1 can baby formula ? 1 can tuna fish; (c) 1 can baby formula ? 5 cans tuna fish?