Exhibit 28-2 Karl Can Produce Either 10 Tons of Oranges

question 79

Multiple Choice

Exhibit 28-2 Karl can produce either 10 tons of oranges or 5 tons of apples in a year,while Adam can produce either 5 tons of oranges or 10 tons of apples.
Refer to Exhibit 28-2.Which of the following is true?

• A) Mutually beneficial trade between Karl and Adam could take place at an exchange rate of 1 ton of apples to 1 1/2 ton of oranges.
• B) Mutually beneficial trade between Karl and Adam could take place at an exchange rate of 1 ton of oranges to 1 1/2 ton of apples.
• C) both a. and b. are true.
• D) neither a. or b. are true.

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Definitions:

Conj

Short for conjunction, a word used to connect clauses or sentences or to coordinate words in the same clause.

MP

A shorthand for Modus Ponens, a logical argument form where if a implies b, and a is true, then b must also be true.

Add

The mathematical operation of combining two or more quantities to get a sum.

Simp

Colloquially, a person who is perceived as excessively deferential, subservient, or attentive, often to someone they are attracted to, potentially to their own detriment.