Business, 21.02.2020 19:32, bnbjj

Suppose Mexico can produce 5 autos or 10 corn. Suppose the United States can produce 4 autos or 20 corn. If opportunity costs are constant for both countries, which of the following would NOT be a potential terms of trade?

A. 1 auto for 3 corn

B. 1 corn for 1 auto

C. 1 corn for 1/3 of an auto

D. 1 auto for 4 corn

Answers: 3

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Suppose Mexico can produce 5 autos or 10 corn. Suppose the United States can produce 4 autos or 20 c...