If Bo and Kenzi were to specialize and trade,at what exchange rate would they find some quantity of trade to be mutually beneficial?
A) 3 pizzas for 1 stromboli
B) 1 pizza for 1 stromboli
C) 10 pizzas for 2 stromboli
D) 1 pizza for 1/2 stromboli
E) 1 pizza for 1/4 stromboli

Question

Quizplus · Accepted Answer

Mutual benefit in trade occurs when the exchange rate lies between the parties' opportunity costs. Without specific details on Bo and Kenzi's production capabilities and costs, the most balanced and equitable rate provided is 1 pizza for 1 stromboli, assuming their production costs or values are similar or not provided.

If Bo and Kenzi Were to Specialize and Trade,at What