Consider the no-trade input/output situation presented in the following table and graph for South and North...
Consider the no-trade input/output situation presented in the following table and graph for South and North Carolina. Assume that free trade is legal. Input/Output without Trade Country South Carolina North Carolina | Total 1. Total Potential Output |(lbs. or yards; 000,000s) Guns 500 250 750 Butter 1,000 750 1,750 u. Consumption (lbs. or yards; 000,000s) Guns 250 200 450 Butter 5001 150 650 What is the relative price of a pound of butter in terms of guns in North Carolina? 0 1 gun costs 0.33 pounds of butter. 2 guns costs 0.66 pounds of butter. o 1 pound of butter costs 0.66 guns. 01 pound of butter costs 0.33 guns.