Question: solve a. Why is trading away a computer for three shirts a good trade for the United States? Why is it also a good deal
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a. Why is trading away a computer for three shirts a good trade for the United States? Why is it also a good deal for Mexico? If the United States 'traded' one computer domestically by shifting resources into shirt production, there would be three more shirts . available as a result. If Mexico 'traded' three shirts domestically by reallocating resources, it would get one-half more computers as a result. b. What if, instead, the agreed-upon terms of trade were one computer for eight shirts. Would this trade still benefit both the United States and Mexico? It would benefit the United StatesStep by Step Solution
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