Q657
The following table shows cost per unit of production of two goods, wheat and cloth in 2 countries X and Y with no transportation cost and free trade X (Rs.) Y (Rs.) Wheat 50 350 Cloth 100 500 Which one of the following will take place?
The following table shows cost per unit of production of two goods, wheat and cloth in 2 countries X and Y with no transportation cost and free trade
Which one of the following will take place?
| X (Rs.) | Y (Rs.) | |
| Wheat | 50 | 350 |
| Cloth | 100 | 500 |
A.
No trade will take place
B.
X will export wheat and import cloth
C.
X will export cloth and import wheat
D.
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AnswerAnswer: Option D
Solution
Answer: Option D
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