The accompanying tables give production possibilities data for Gamma and Sigma. All data are in tons.
Gamma's production possibilities
A B C D E
Tea 120 90 60 30 0
Pots 0 30 60 90 120
Sigma's production possibilities
A B C D E
Tea 40 30 20 10 0
Pots 0 30 60 90 120
On the basis of this information:
a. Gamma should export tea to Sigma, but it will not be profitable for the two nations to exchange pots.
b. Sigma should export tea to Gamma, and Gamma should export pots to Sigma.
c. Gamma should export tea to Sigma, and Sigma should export pots to Gamma.
d. Gamma should export both tea and pots to Sigma.
Answers: 3
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The accompanying tables give production possibilities data for Gamma and Sigma. All data are in tons...
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