In the link below, what are the limits of the terms of trade for the two goods? What is the answer 1. d)
In this situation, we need to determine the circumstances in which each country will be willing to trade Blu-ray discs for Blu-ray players. In order to fall within the limits of the terms of trade, the trade must in some way benefit both sides.
From the table, we can see that the fictional country of Aries can make 25 discs or one player per worker per day. Pisces can make 20 discs or 4 players. Therefore, each country will only trade if it can get more of the...
(The entire section contains 262 words.)
check Approved by eNotes Editorial