Suppose Mexico can produce 5 autos or 10 corn. Suppose the United States can produce 4 autos or 20 corn. If opportunity costs are constant for both countries, which of the following would NOT be a potential terms of trade?
A. 1 auto for 3 corn
B. 1 corn for 1 auto
C. 1 corn for 1/3 of an auto
D. 1 auto for 4 corn
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Home » Business » Suppose Mexico can produce 5 autos or 10 corn. Suppose the United States can produce 4 autos or 20 corn. If opportunity costs are constant for both countries, which of the following would NOT be a potential terms of trade? A. 1 auto for 3 corn B.