Refer to the figure Mutually Beneficial Trade II. The figure shows the production possibility frontier (PPF) for producing tennis rackets and tennis balls in Stewarton and Colberton. If the countries trade according to their comparative advantage, then terms of trade for tennis rackets will be between:
Figure: Mutually Beneficial Trade II
A) two and three tennis balls.
B) one-half and three tennis balls.
C) one-third and two tennis balls.
D) one-third and one-half tennis ball.
Correct Answer:
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