What is the implied price of the carrier in trade

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Reference no: EM13232974

Suppose a country can produce a maximum of 10,000 jumbo airliners or 2,000 aircraft carriers.

a. What is the opportunity cost of an aircraft carrier?

b. If another country offers to trade six planes for one aircraft carrier, should the offer be accepted?

c. What is the implied price of the carrier in trade?

Reference no: EM13232974

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