(A) Which state has a comparative advantage in wheat production? A. South Dakota B. North DakotaC. Neither state

(B) What is the relative price of wheat in North Dakota prior to trade? A. 1 bushels of wheat = 1/3 bottle of beer B. 1/3 bushel of wheat = 1 bottles of beer C. 1 bushel of wheat = 1/3 bottle of beer D. 1 bushel of wheat = 3 bottles of beer

(C) In what range must the "international" price of wheat fall? i.e. if North and South Dakota trade only with each other, what is the range of prices possible? A. Between 4/3 bottles of beer per wheat and 3 bottles of beer per wheat B. Between 3/4 bottles of beer per wheat and 3 bottles of beer per wheat C. Between 1/3 bottles of beer per wheat and 3/4 bottles of beer per wheat D. None of the above

The table below shows the bushels of wheat and the bottles of beer that North and South Dakota can produce per day of labor South Dakota North Dakota Wheat (bushels) 3 Beer (bottles) 3