Figure 3-15
Perry's Production Possibilities Frontier
Jordan's Production Possibilities Frontier
-Refer to Figure 3-15.If Perry and Jordan each spends all of his/her time producing the good in which s/he has a comparative advantage and trade takes place at a price of 1 novel for 7 poems,then
A)Perry and Jordan will both gain from this trade.
B)Perry will gain from this trade,but Jordan will not.
C)Jordan will gain from this trade,but Perry will not.
D)neither Perry nor Jordan will gain from this trade.

Question

Figure 3-15
Perry's Production Possibilities Frontier
Jordan's Production Possibilities Frontier  
-Refer to Figure 3-15.If Perry and Jordan each spends all of his/her time producing the good in which s/he has a comparative advantage and trade takes place at a price of 1 novel for 7 poems,then
A)Perry and Jordan will both gain from this trade. 
B)Perry will gain from this trade,but Jordan will not. 
C)Jordan will gain from this trade,but Perry will not. 
D)neither Perry nor Jordan will gain from this trade.

Quizplus · Accepted Answer

The Answer of Figure 3-15
Perry's Production Possibilities Frontier
Jordan's Production Possibilities Frontier  
-Refer to Figure 3-15.If Perry and Jordan each spends all of his/her time producing the good in which s/he has a comparative advantage and trade takes place at a price of 1 novel for 7 poems,then
A)Perry and Jordan will both gain from this trade. 
B)Perry will gain from this trade,but Jordan will not. 
C)Jordan will gain from this trade,but Perry will not. 
D)neither Perry nor Jordan will gain from this trade.

Figure 3-15 Perry's Production Possibilities Frontier