In Samoa the opportunity cost of producing one coconut is four pineapples, while in Guam the opportunity

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In Samoa the opportunity cost of producing one coconut is four pineapples, while in Guam the opportunity cost of producing one coconut is five pineapples. In this situation, ______.

a. If trade occurs, both countries will be able to consume beyond the frontiers of their original production possibilities

b. Guam will be better off if it exports coconuts and imports pineapples

c. Both Samoa and Guam will be better off if Samoa produces both coconuts and pineapples

d. Mutually beneficial trade cannot occur

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Exploring Economics

ISBN: 9781544336329

8th Edition

Authors: Robert L. Sexton

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