Benefits from Trade. In Country A, the opportunity cost of a box is 10 sticks. In Country B, the opportunity cost of a box is 200 sticks. a. Suppose the two countries split the difference between the...

Benefits from Trade. In Country A, the opportunity cost of a box is 10 sticks. In Country B, the opportunity cost of a box is 200 sticks.

a. Suppose the two countries split the difference between the willingness to pay for boxes and accept boxes. Compute the terms of trade, that is, the rate at which the two countries will exchange boxes and sticks.

b. Suppose the two countries exchange one box for the number of sticks dictated by the terms of trade you computed in part (a). Compute the net benefit from trade for each country.