Question

Two isolated nations, Alphaland and Betaton, are considering opening their borders to trade with each other. Both nations consume only two goods: salt and pepper. Alphaland can produce either 80 tons of salt per day or 5 tons of pepper per day, while Betaton can produce either 3 tons of salt per day or 1 ton of pepper per day. Which trade ratios would make both nations better off? Correct Answer(s) 2 tons of salt for 1 ton of pepper 5 tons of salt for 1 ton of pepper 20 tons of salt for 1 ton of pepper 10 tons of salt for 1 ton of pepper

Answer 1

Answer

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Explanation  

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