Assume that by devoting all its resources to the production of x, nation alpha can produce 40 units of x. by devoting all its resources to y, alpha can produce 60y. comparable figures for nation beta are 60x and 40y. the terms of trade will be at or within the 1x = 1½y to 1x = ⅔y range. true or false?

Many potential buyers value high-quality used cars at the full-information market price of € p1 and lemons at € p2. a limited number of potential sellers value high-quality cars at € v1 ≤ p1 and lemons at € v2 ≤ p2. everyone is risk neutral. the share of lemons among all the used cars that might be potentially sold is € θ . suppose that the buyers incur a transaction cost of $200 to purchase a car. this transaction cost is the value of their time to find a car. what is the equilibrium? is it possible that no cars are sold