Figure 3-2
-Refer to Figure 3-2.Originally,Ben was producing at his point A and Jerry was producing at his point A.Then,each person decided to specialize in the product in which he has a comparative advantage.Furthermore,they agreed to trade 4 pounds of cones for 2 pounds of ice cream.As a result of these new arrangements,the gains from trade relative to the original situation are as follows:
A) 1 additional pound of cones for Ben and 1 additional pound of ice cream for Jerry.
B) 1 additional pound of ice cream for Ben and 1 additional pound of cones for Jerry.
C) 2 additional pounds of ice cream for Ben and 2 additional pounds of cones for Jerry.
D) 2 additional pounds of ice cream for Ben and 1 additional pound of cones for Jerry.
Correct Answer:
Verified
Q40: Figure 3-1 Q41: For the following question(s), use the accompanying Q42: For the following question(s), use the accompanying Q43: For the following question(s), use the accompanying Q44: For the following question(s), use the accompanying