Maria and Shayla produce pickles and cheese. Maria's production function is Qp 425 -5Q0 Shayla's production function is Qp 406 - 7QC These two people are currently not trading. Maria is currently producing and consuming 200 pickles and 45 cheeses. Shayla is currently producing and consuming 196 pickles and 30 cheeses. Then these two people specialize and trade based on comparative advantage. The terms of trade are 207 pickles for 34 cheeses. What are the gains from trade for Maria in terms of CHEESES?

Maria and Shayla produce pickles and cheese. Maria's production function is Qp 425 -5Q0 Shayla's production function is Qp 406 - 7QC These two people are currently not trading. Maria is currently producing and consuming 200 pickles and 45 cheeses. Shayla is currently producing and consuming 196 pickles and 30 cheeses. Then these two people specialize and trade based on comparative advantage. The terms of trade are 207 pickles for 34 cheeses. What are the gains from trade for Maria in terms of CHEESES?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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