Full question and data is attached. Table 3-8 Assume tha

Full question and data is attached.
Table 3-8
Assume that Kito and Penda can switch between producing baskets and producing birdhouses at a constant rate.
Labor Hours Needed to Make 1
Quantity Produced in 24 Hours
Basket
Birdhouse
Baskets
Birdhouses
Kito
8
2
3
12
Penda
1.5
2
16
12
107. Refer to Table 3-8. At which of the following prices would both Kito and Penda gain from trade with each other?
a.
30 baskets for 15 birdhouses
b.
30 baskets for 18 birdhouses
c.
30 baskets for 24 birdhouses
d.
Kito and Penda could not both gain from trade with each other at any price.
ANS: C DIF: 3 REF: 3-2
NAT: Analytic LOC: Gains from trade specialization and trade
TOP: Price of trade MSC: Analytical
Attachments: