A Butcher Can Produce Only Hamburgers, and a Farmer Can

question 56

Multiple Choice

A butcher can produce only hamburgers, and a farmer can produce only potato chips.The butcher and the farmer both like both foods.They:

• A)cannot gain from trade
• B)could gain from trade under certain circumstances, but not always
• C)could gain from trade because each would enjoy a greater variety of food
• D)could gain from trade only if each were indifferent between hamburgers and potato chips