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Suppose mexico’s opportunity cost for producing 1 unit of food is 3 units of clothing and the united states’ opportunity cost for producing 1 unit of food is 0.5 units of clothing. trade at a ratio of 1: 1 is beneficial to both countries. how beneficial would it be for mexico if the trading ratio were 1 unit of clothing for every 2 units of food?
a. so long as the ratio is between 1: 3 and 2: 1, it makes no difference
b. mexico is better off not trading at all
c. this is even better than 1: 1
d. it is still beneficial, but not as good as 1: 1
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