Question

In Lima one worker can produce either 33 bushels of corn of 6 pounds of tomatoes in one day. In Puma one worker can produce either 103 bushels of corn or 14 pounds of tomatoes in one day. The country that specializes in corn production is willing to buy one pound of tomatoes for not more than how many bushels of corn?

Answer 1

Answer:

Puma is the country that specializes in produce corn and is willing to pay no more than 7.35 bushel of corns per pound of tomatoes.

Explanation:

This value comes from the relative cost of producing one pound of tomatoes. In the case of Puma, is better for the country to produce tomatoes if the price is higher than 7.35 bushel of corn, any value below is better to produce corn and trade. In the case of Lima, has sense to trade when the price of tomatoes is higher of 5.5.