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Business, 09.09.2019 20:20 cheergirlkr4746
Assume that in a production period there are 60 hours, and before specialization scotland produced both products on their own. they choose to produce the combination of outputs of 7.5 tons of oats and 6 bagpipes. suppose that scotland and the united states agree to specialize according to comparative advantage and then trade between themselves on the following terms: 1 ton of oats for 1 bagpipe. remember that they have 10 full days to produce the item the have comparative advantage in. after specialization and trade with the u. s., scotland wants to still have 6 bagpipes. what will be the gains from trade for scotland?
a. 0.5 tons of oats.
b. 2.5 tons of oats.
c. 3.5 tons of oats.
d. 1.5 tons of oats.
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