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371 bytes added ,  02:58, May 25, 2007
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There are three different parties (or rational economists if you will) mentioned either directly or indirectly in this question: The USA, China, and the recipients of the production costs. China and America will both be better off if they minimize the amount paid to the third party above. This is accomlished by having China doing the production. --[[User:BenjaminS|Ben]] <sub>[[User Talk:BenjaminS|Talk]]</sub> 22:31, 24 May 2007 (EDT)
 
There are three different parties (or rational economists if you will) mentioned either directly or indirectly in this question: The USA, China, and the recipients of the production costs. China and America will both be better off if they minimize the amount paid to the third party above. This is accomlished by having China doing the production. --[[User:BenjaminS|Ben]] <sub>[[User Talk:BenjaminS|Talk]]</sub> 22:31, 24 May 2007 (EDT)
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: Ben, you make a good point and your citation to the Coase Theorem is superb.  You're right that, economically speaking, China should do all the production.  But, alas, that was not one of the answer choices!  It's doesn't fit your "can't tell" choice either.  Ha ha ha, the given answer is still the best answer!--[[User:Aschlafly|Aschlafly]] 22:58, 24 May 2007 (EDT)
    
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== Final Exam ==
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