In a Single Year, Argentina Can Raise 100 Tons of Beef

question 88

Essay

In a single year, Argentina can raise 100 tons of beef or produce 1,000 boxes of tulips.In the same growing season, Venezuela can raise 50 tons of beef or produce 750 boxes of tulips.When the two countries begin trading beef for tulips, we would expect the price of beef in Argentina:
A.to fall from the autarky price.
B.to rise from the autarky price.
C.to remain at the autarky price.
D.to be 10 boxes of tulips.

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