
-Refer to above figure to answer this question.Suppose that both Harmony and Tranquility are producing 20 pears;what will be the total gains from trade for the two countries?
A) 20 apples and 0 pears.
B) 30 apples and 10 pears.
C) 20 apples and 10 pears.
D) 20 apples and 30 pears.
E) 0 apples and 20 pears.
Correct Answer:
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Q113: Suppose that the cost of producing 1
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