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Answer the question on the basis of the following production possibilities data for Gamma and Sigma. All data are in tons.   Gamma production possibilities:   A B C D E Tea 120 90 60 30 0 Pots 0 30 60 90 120   Sigma production possibilities:   A B C D E Tea 40 30 20 10 0 Pots 0 30 60 90 120   What are the limits of the terms of trade between Gamma and Sigma?    1 tea=2 pots to 1 tea=6 pots            1 tea=3 pots to 1 tea=6 pots            1 tea=2 pots to 1 tea=3.5 pots            1 tea=1 pot to 1 tea=3 pots

Answer the question on the basis of the following production possibilities data for Gamma and Sigma. All data are in tons.   Gamma production possibilities:   A B C D E Tea 120 90 60 30 0 Pots 0 30 60 90 120   Sigma production possibilities:   A B C D E Tea 40 30 20 10 0 Pots 0 30 60 90 120   What are the limits of the terms of trade between Gamma and Sigma?    1 tea=2 pots to 1 tea=6 pots            1 tea=3 pots to 1 tea=6 pots            1 tea=2 pots to 1 tea=3.5 pots            1 tea=1 pot to 1 tea=3 pots

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Answer the question on the basis of the following production possibilities data for Gamma and Sigma. All data are in tons.

 

Gamma production possibilities:

  A B C D E
Tea 120 90 60 30 0
Pots 0 30 60 90 120

 

Sigma production possibilities:
  A B C D E
Tea 40 30 20 10 0
Pots 0 30 60 90 120

 

What are the limits of the terms of trade between Gamma and Sigma?
  
1 tea=2 pots to 1 tea=6 pots
 
 
 
 
  
1 tea=3 pots to 1 tea=6 pots
 
 
 
 
  
1 tea=2 pots to 1 tea=3.5 pots
 
 
 
 
  
1 tea=1 pot to 1 tea=3 pots
 
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