Suppose that in Case B in Table 2.5 the United States exchanges 4W for 4C with the United Kingdom.

(a) How much does the United States gain in terms of cloth?

(b) How much does the United Kingdom gain in terms of cloth?

(c) What is the range for mutually beneficial trade?

(d) How much would each nation gain if they exchanged 4W for 6C instead?

Table 2.5

Production Possibilities in the United States and the United Kingdom

Case A Case B Case C Case D U.S U.K U.S U.K U.S U.K U.S U.K Wheat (bushels/hour) Cloth (yards/hour) 4