Table 3-23 Assume That the Farmer and the Rancher Can Switch Between

question 279

Multiple Choice

Table 3-23
Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate.
​
-Refer to Table 3-23. Assume that the farmer and the rancher each has 24 labor hours available. If each person spends all his time producing the good in which he has a comparative advantage and trade takes place at a price of 1 pound of pork for 2 pounds of tomatoes, then

• A)the farmer and the rancher will both gain from this trade.
• B)the farmer will gain from this trade, but the rancher will not.
• C)the rancher will gain from this trade, but the farmer will not.
• D)neither the farmer nor the rancher will gain from this trade.

---

Definitions:

Financial Analysts

Professionals who assess the financial health of businesses, projects, or securities and provide investment recommendations based on their analyses.

Knowledge Workers

Individuals whose primary job involves processing and working with information, requiring specialized knowledge or technical skills.

Marketing Analysts

Professionals who assess market trends, consumer behavior, and competitive dynamics to inform business strategy and marketing efforts.

Interorganizational System

An interorganizational system (IOS) is a technology-based infrastructure enabling information exchange and coordination of activities between different organizations.