The table gives the production costs for one unit of food and one unit of clothing in countries X and Y, stated in each country's own currency. country X: food $2, clothing $4; country Y: food £1, clothing £1. The exchange rate is fixed at £1 = $3. At what transport cost per unit of each commodity would the gains from trade be completely removed?
- A£0.33
- B£0.50
- C£1.00
- D£1.50