Widgetland has 60 workers. Each worker can produce 10 widget(s) or 12 wadget(s). Each resident in Widgetland currently consumes 8 widget(s) and 8 wadget(s). Wadgetland also has 60 workers. Each can produce 10 widget(s) or 8 wadget(s). Wadgetland’s residents consume 8 widget(s) and 7 wadget(s). Is there a basis for trade? If so, offer the countries a deal they can’t refuse
a. Is there a basis for trade (yes or no )
b. To maximize consumption, Widgetland should produce --------- wadgets
c. To maximize consumption, Wadgetland should produce ---------- widgets
d. Widgetland needs ------- widgets and has ---------- wadgets to trade for them.
e. Wadgetland needs -------- wadgets and has ---------- widgets to trade for them.