Answer the question on the basis of the following production possibilities tables for two countries,Latalia and Trombonia: $\begin{array}{c}
\quad\quad\quad\underline{ \text {Latalia's Production Possibilities }}\
\begin{array}{lll}
\
\text {Pork (Tons)}\
\text {Beans (Tons)}
\end{array}
\begin{array}{c}
\underline{\text {A}}\
4\
0
\end{array}
\begin{array}{c}
\underline{\text {B}}\
3\
5
\end{array}
\begin{array}{c}
\underline{\text {C}}\
2\
10
\end{array}
\begin{array}{c}
\underline{\text {D}}\
1\
15
\end{array}
\begin{array}{c}
\underline{\text {E}}\
0\
20
\end{array}
\end{array}$

$\begin{array}{c}
\quad\quad\quad\underline{\text {Trombonia's Production Possibilities }}\
\begin{array}{lll}
\
\text {Pork (Tons)}\
\text {Beans (Tons)}
\end{array}
\begin{array}{c}
\underline{\text {A}}\
8\
0
\end{array}
\begin{array}{c}
\underline{\text {B}}\
6\
6
\end{array}
\begin{array}{c}
\underline{\text {C}}\
4\
12
\end{array}
\begin{array}{c}
\underline{\text {D}}\
2\
18
\end{array}
\begin{array}{c}
\underline{\text {E}}\
0\
24
\end{array}
\end{array}$

Refer to the tables.Which of the following would be feasible terms for trade between Latalia and Trombonia?

Question

Answer the question on the basis of the following production possibilities tables for two countries,Latalia and Trombonia: $\begin{array}{c}
\quad\quad\quad\underline{ \text {Latalia's Production Possibilities }}\
\begin{array}{lll}
\
 \text {Pork (Tons)}\
 \text {Beans (Tons)}
\end{array}
\begin{array}{c}
\underline{\text {A}}\
4\
0
\end{array}
\begin{array}{c}
\underline{\text {B}}\
3\
5
\end{array}
\begin{array}{c}
\underline{\text {C}}\
2\
10
\end{array}
\begin{array}{c}
\underline{\text {D}}\
1\
15
\end{array}
\begin{array}{c}
\underline{\text {E}}\
0\
20
\end{array}
\end{array}$
 
 $\begin{array}{c}
\quad\quad\quad\underline{\text {Trombonia's Production Possibilities  }}\
\begin{array}{lll}
\
 \text {Pork (Tons)}\
 \text {Beans (Tons)}
\end{array}
\begin{array}{c}
\underline{\text {A}}\
8\
0
\end{array}
\begin{array}{c}
\underline{\text {B}}\
6\
6
\end{array}
\begin{array}{c}
\underline{\text {C}}\
4\
12
\end{array}
\begin{array}{c}
\underline{\text {D}}\
2\
18
\end{array}
\begin{array}{c}
\underline{\text {E}}\
0\
24
\end{array}
\end{array}$

Refer to the tables.Which of the following would be feasible terms for trade between Latalia and Trombonia?

Quizplus · Accepted Answer

According to the production possibility tables of Latalia and Trombonia, Latalia has a comparative advantage in producing beans and Trombonia has a comparative advantage in producing pork. The opportunity cost of producing one ton of pork is six tons of beans in Trombonia, while in Latalia, the opportunity cost of producing one ton of pork is only four tons of beans. Therefore, it would be feasible for Trombonia to trade one ton of pork for four tons of beans with Latalia. Hence, Choice D is the best option.

Answer the Question on the Basis of the Following Production