An American worker and German worker can each produce one car per month.

| November 24, 2016

Scenario:

An American worker and German worker can each produce one car per month. An American worker can produce two tons of grain per month, and a German worker can produce one ton of grain per month.

Reference the scenario above to answer these questions:

1) Calculate what the optimal trade would be for these two countries.

2) Determine how much each should produce to optimize production.

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