asked 109k views
1 vote
Suppose that Candonia and Sylvania agree to trade. Each country focuses its resources on producing only the good in which it has a comparative advantage. The countries decide to exchange 8 million pounds of lemons for 8 million pounds of coffee.

This ratio of goods is known as the price of trade between Candonia and Sylvania.
True or False?

asked
User Baptiste
by
7.6k points

1 Answer

6 votes
I believe it is true
answered
User Upscale
by
8.4k points
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