Problem
Suppose that the marginal-cost ratios of two products-mangoes and sardines-are as follows in the hypothetical nations of Mangolia and Sardinia:
Mangolia: 1 mango = 2 cans of sardines
Sardinia: 1 mango = 4 cans of sardines
In what product should each nation specialize? Explain why the terms of trade of 1 mango = 3 cans of sardines would be acceptable to both nations.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.