Multiple Choice
With 24 units of labor and no trade Brazil produces and consumes eight units of sugar cane and two iPods. Sugar cane costs $50/unit, and iPods cost $200. After specialization and trade, Brazil consumes eight units of sugar cane and four iPods. What are wages in Brazil?
A) $33 without trade and $50 with trade
B) $50 without trade and $75 with trade
C) $50 without trade and $33 with trade
D) $33 without trade and $75 with trade
Correct Answer:
Verified
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