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The following table shows the units of output a worker can produce per month in Germany and Poland. Use this table to answer the question.
Wheat | Computers | |
Germany | 20 | 5 |
Poland | 8 | 4 |
Prices of computers can be stated in terms of units of wheat. What is the range of prices of computers for which both countries could gain from trade?
ANSWER:
The price must be greater than 2 units of wheat but less than 4 units of wheat.