(Choose 1 answer)
(17736) Refer to Table 3-2. At which of the following prices would both Aruba and Iceland gain from trade with each
other?
A. Aruba and Iceland could not both gain from trade with each other at any price.
B. 2 radio for 10 coolers
C. 2 radios for 4 coolers
D. 2 radio for 6 coolers
Table 3-2
Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate.
Labor Hours
Needed to Make 1
Cooler
2
1
Radio
5
4
Aruba
Iceland
