Suppose that in Slovakia one unit of labor can produce either 20 tons of wheat or 40 tons of soy and in Poland one unit of labor can produce either 40 tons of wheat or 20 tons of soy. If each country has two units of labor, which of the following consumption combinations can be attained only with trade?
A. Slovakia consumes 80 tons of soy.
B. Poland consumes 40 tons of wheat and 20 tons of soy.
C. Slovakia consumes 30 tons of both soy and wheat.
D. Poland consumes 80 tons of wheat.
Answer: C
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A) are always present in simultaneous games. B) result in a prisoners' dilemma. C) result in one firm winning and the other losing. D) None of the above.