Answer to Question #193121 in Microeconomics for Simranjit kaur

Question

Suppose only trade with each other and the both produce the same to go to grocery and fish given its resources Argentina can produce either two units across the per day or one unit of fish grocery or four units of fish draw the production possibilities frontier for each country on separate crops if there were no trade what would be the local price of fish in each country measured in units of grocery if the trade is allowed which country will export fish and which country will export proceeds what are the gains from trading a unit of fish if the international price of fish is equal to the average of local prices in two countries

Answer 1

If fish =0

$$Qg=\frac{7}{3}=2.3$$

If grocery=0

$$Q_f=7$$