Suppose That a Worker in Country a Can Make Either

question 115

Multiple Choice

Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year.Country A has 200 workers.Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year.Country B has 400 workers.Suppose Country B decides to specialize in tomatoes,and Country A specializes in bananas.What terms of trade would both countries agree to? One tomato for:

• A) one banana
• B) two bananas
• C) four bananas
• D) six bananas

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Definitions:

Cost Of Goods Manufactured

Cost of goods manufactured is the total cost incurred by a company to produce goods within a specific period, including costs related to materials, labor, and overhead.