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Suppose that without specialization, iran produces 4 barrels of oil and 6 bottles of olive oil, and iraq produces 4 barrels of oil and 4 bottles of olive oil (in millions per day). are the countries better off or worse off with specialization and trade? suppose that the terms of trade with specialization are 4 barrels of oil for 4.3 bottles of olive oil, and that 4 barrels of oil are indeed traded for 4.3 bottles of olive oil. with specialization and trade, how many additional barrels of olive oil can iran consume?
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Suppose that without specialization, iran produces 4 barrels of oil and 6 bottles of olive oil, and...
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