Ive been looking all over the place for an answer to this question. I'm sure its simple and its driving me nuts.
The answer is b. but i dont know why.
$W10 = C10 \implies 1W = 1C$
$7W = 2C \implies 2/7C$
What am i missing?
2026-03-27 18:26:07.1774635967
PPF comparative advantage
83 Views Asked by Bumbble Comm https://math.techqa.club/user/bumbble-comm/detail At
1
First off, I think you’re mistaking an $8$ for a $7$ on the y axis of Cliff’s PPF.
The idea is that Paul can trade wheat for corn with himself at 1:1, so he needs a better deal than that to trade with Cliff. On the other hand, Cliff can trade 1 corn for 4 wheat with himself. The only of the four options where both are getting a better deal is when Cliff gets 1 corn from Paul in exchange for 2 wheat.
(Also note (a) and (d) are the same exchange rate.)