1. Use the following table to answer the question below.

Dave's Production Possibilities Schedule		Simon's Production Possibilities Schedule
Pounds of Green Beans	Pounds of Corn	Pounds of Green Beans	Pounds of Corn
0	160	0	80
20	120	40	60
40	80	80	40
60	40	120	20
80	0	160	0

Assume Dave consumes 40 pounds of green beans and 80 pounds of corn without trade. Also, assume that Simon consumes 80 pounds of green beans and 40 pounds of corn without trade. Suppose Simon and Dave specialize and that the terms of trade are 1 pound of green beans for 1 pound of corn. If Simon sells Dave 80 pounds of green beans, then the gains from trade for Simon are ______ pounds of green beans and ______ pounds of corn with trade and specialization.

1. 40,40
2. 0,40
3. 20,20
4. 40,0

Answer rating: 100% (QA)

The Daves opportunity cost of producing 1 pound of corn is computed usin... View the full answer